Assume that one day's labor in England can produce either 20 units of cloth or 2 units of wine, while in Portugal, one day's labor can produce either 24 units of cloth or 12 units of wine. If England transfers 2 units of labor from wine to cloth and Portugal transfers 1 unit of labor from cloth to wine, the increase in combined output by those two workers will be

a. 16 wine, 8 cloth
b. 16 wine, 16 cloth
c. 12 wine, 12 cloth
d. 8 wine, 16 cloth

d

Economics

You might also like to view...

Japan and Germany are two major __________-oriented systems

A) securities B) equities C) banking D) markets

Economics

At year-end 2014, the national debt of the United States was approximately

a. 5 percent of GDP. b. 25 percent of GDP. c. 77 percent of GDP. d. 107 percent of GDP.

Economics