The Following Data Outline Production Choices (A or B) in Two

question 48

Multiple Choice

The following data outline production choices (A or B) in two nations, Latalia and Trombonia. Latalia has a workforce of 14 and Trombonia has a workforce of 10.

$\begin{array} { | l | c | c | l | c | c | c | } \hline { \text { Output per worker in Latalia } } & &&& { \text { Output per worker in Trombonia } } \\\hline & \text { A } & \text { B } & & & \text { A } & \text { B } \\\hline \text { Pork (tons) } & 4 & 0 & & \text { Pork (tons) } & 8 & 0 \\\hline \text { Beans (tons) } & 0 & 20 & & \text { Beans (tons) } & 0 & 24 \\\hline\end{array}$
-Assume that before specialization and trade,each nation devoted half of its workforce to each product.If these two nations fully specialize in accordance with comparative advantage,the total gains from specialization would be:

• A)12 tons of pork and 20 tons of beans
• B)88 tons of pork and 120 tons of beans
• C)100 tons of pork and 100 tons of beans
• D)12 tons of pork and 120 tons of beans
• E)88 tons of pork and 100 tons of beans

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