Refer to the Data Above to Answer This Question

question 46

Multiple Choice

Refer to the data above to answer this question.Suppose that initially each country allocated 5 million of its population to the rice industry,the rest being employed in the beer industry.If they now decide to totally specialize in the products in which each has a comparative advantage,what will be the resulting gains from trade?

• A)0 rice and 25 beer.
• B)1 rice and 1 beer.
• C)35 rice and 35 beer.
• D)21 rice and 0 beer.

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