Social Studies, 27.03.2020 05:33 Joshuafranklindude
"Fill in the blank" question: Assume that, initially, the countries are not engaging in trade, but are producing output for their own consumption. Country A produces and consumes 30 computers and 7,000 bushels of wheat per week, while Country B produces and consumes 65 computers and 6,600 bushels of wheat. If both countries specialize according to comparative advantage, world production changes from 95 computers to 100computers, and from 13,600 bushels of wheat to 13,750bushels of wheat. As a result of specialization, world production of both computers and wheat has increased, indicating the potential for gainsfrom free trade
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