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Below is the productivity per worker (kilos per day) in the rice and beer industries of Catalonia and Granada. The population in each country is
Below is the productivity per worker (kilos per day) in the rice and beer industries of Catalonia and Granada. The population in each country is 12 million people. Catalonia Rice Beer Granada Or Or 24) Refer to the data above to answer this question. Suppose that initially each country 24) 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) 35 rice and 35 beer. B) 0 rice and 25 beer. C) 21 rice and 0 beer. D) I rice and I beer
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