In the Table Below Both Countries Produce at the Bold

question 50

Multiple Choice

In the table below both countries produce at the bold levels of output without trade.Assume the US and UK initiate trade and begin to completely specialize in the commodity in which they have a comparative advantage.What would the gains from trade be if the US trades 50 units of rice to the UK for 50 units of pudding?
Production Possibility Schedule for Rice and Pudding in the United States and the United Kingdom
$\begin{array}{|cc|cc|}\hline \text { United States } &&\text {United Kingdom } \\\hline \text {Rice} & \text {Pudding} &\text { Rice }& \text {Pudding} \\\hline 140 & 0 & 35 & 0 \\\hline 120 & 10 & 30 & 20 \\\hline 100 & 20 & 25 & 40 \\\hline 80 & 30 & 20 & 60 \\\hline 60 & 40 & 15 & 80 \\\hline 40 & 50 & 10 & 100 \\\hline 20 & 60 & 5 & 120 \\\hline 0 & 70 & 0 & 140 \\\hline\end{array}$

• A)US: 10 units of pudding,20 units of rice
• B)US: 20 units of pudding,10 units of rice
• C)UK: 10 units of pudding,20 units of rice
• D)UK: 20 units of pudding,10 units of rice

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Definitions:

Public Notice

An official announcement issued to the public through various media outlets to inform about legal proceedings, government actions, or other significant matters.

Third Parties

Individuals or groups besides the two involved in a transaction or legal case, often indirectly affected by the outcome.

Security Interest

A rephrased definition: A financial security provided by a debtor to a creditor as a guarantee for repayment of a loan, often involving a lien on an asset.

Attachment

A legal procedure by which a court of law, at the request of a creditor, designates specific property owned by the debtor to be transferred to the creditor, or sold for the benefit of the creditor.