Refer to the Data Below

question 55

Multiple Choice

Refer to the data below.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:
Production possibilities data for Gamma and Sigma.All data are in tons.
Gamma production possibilities:
Sigma production possibilities:

• 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:

European Rail System

The extensive network of railways connecting various countries across Europe, known for its efficiency and connectivity, offering both freight and passenger services.

Market Revolution

A major transformation in the early 19th century United States economy, driven by innovations in transportation, communication, and manufacturing.

Holy Cult

A religious group or sect that is devoted to the worship of a deity or deities and follows distinct rituals, often viewed by outsiders with skepticism or caution.

Alexis De Tocqueville

A French political thinker and historian best known for his works "Democracy in America" (1835), where he explores American society, its democratic institutions, and its political culture.