The Following Shows the Production Possibilities Tables for Two Countries,Latalia

question 67

Multiple Choice

The following shows the Production possibilities tables for two countries,Latalia and Trombonia:

-Refer to the above tables.Assume that before specialization and trade,Latalia produced combination C and Trombonia produced combination B.If these two nations now specialize completely in accordance with comparative advantage,the total gains from specialization and trade will be:

• A) 4 tons of beans.
• B) 1 ton of pork and 2 tons of beans.
• C) 4 tons of pork.
• D) 2 tons of pork and 4 tons of beans.

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