Answer the Question on the Basis of the Following Production

question 65

Multiple Choice

Answer the question on the basis of the following production possibilities data for Gamma and Sigma.All data are in tons. Gamma's production possibilities: $\begin{array}{llcc}&\underline{\text { A } }&\underline{\text {B}}&\underline{\text { C} } &\underline{\text { D } }&\underline{\text {E}}\\\text { Tea } &120&90&60&30&0\\\text { Pots}&0&30&60&90&120\end{array}$
Sigma's production possibilities: $\begin{array}{llcc}&\underline{\text { A } }&\underline{\text {B}}&\underline{\text { C} } &\underline{\text { D } }&\underline{\text {E}}\\\text { Tea } &120&90&60&30&0\\\text { Pots}&0&30&60&90&120\end{array}$
Refer to the given data.Assume that before specialization and trade,Gamma and Sigma both chose production possibility "C." Now if each specializes according to comparative advantage,the gains from specialization and trade will be:

• A) 40 tons of pots.
• B) 20 tons of tea and 20 tons of pots.
• C) 20 tons of tea.
• D) 40 tons of tea.

---

Definitions:

Lens

A piece of transparent material, typically glass or plastic, that refracts or focuses light rays, used in glasses and cameras.

Vestibule

The area in the inner ear between the semicircular canals and the cochlea.

Semicircular Canals

Structures in the inner ear that help a person maintain balance; each of the three canals is positioned at right angles to the other two.

Cochlea

A spiral-shaped canal in the inner ear that contains the hearing receptors.