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

question 61

Multiple Choice

The following data outline production choices (A or B) in two nations, Landia and Scandia. Landia has a workforce of 12 and Scandia has a workforce of 10.

$$\begin{array} { | l | c | c | c | c | c | c | } \hline { \text { Output per worker in Landia } } & & && { \text { Output per worker in Scandia } } \\\hline & \mathrm { A } & \mathrm { B } & & & \mathrm { A } & \mathrm { B } \\\hline \text { Fish } & 8 & 0 & & \text { Fish } & 16 & 0 \\\hline \text { Chips } & 0 & 40 & & \text { Chips } & 0 & 48 \\\hline\end{array}$$

-Assume that before specialization and trade,each nation devoted half of its workforce to each product.If these two nations now fully specialize in accordance with comparative advantage,the total gains from specialization would be:

• A)8 chips
• B)50 chips and 24 fish
• C)32 fish
• D)8 chips and 32 fish
• E)24 chips and 32 fish

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points from their mean, used in finance to gauge the volatility of investment returns.

Expected Rate

The anticipated return on an investment, taking into account various factors like market trends, risk level, and past performance.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables.

Weighted Average

A calculation that multiplies each component by a factor reflecting its importance or relevance, then summing these products to obtain an average.