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Assume that one day's labor (one unit of labor = one day of labor) in Argentina can produce either 20 units of cloth or 2
Assume that one day's labor (one unit of labor = one day of labor) in Argentina can produce either 20 units of cloth or 2 units of wine, while in Chile one day's labor can produce either 24 units of cloth or 12 units of wine. If Argentina transfers 2 units of labor from wine to cloth and Chile transfers 1 unit of labor from cloth to wine, the increase in combined output by those two workers will be:
a.
16 wine; 8 cloths
b.
16 wine; 16 cloths
c.
12 wine; 12 cloths
d.
8 wine; 16 cloths
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