Economics Homework Help

6. Suppose that a worker in Grainland can grow either 40 bushels of corn or 20 bushels of oats per year, and a

worker in Farmfields can grow either 20 bushels of corn or 50 bushels of oats per year. There are 200 workers in Grainland and 200 workers in Farmfields. If the two countries do not trade, Grainland will produce and consume 4,000 bushels of corn and 2,000 bushels of oats, while Farmfields will produce and consume 2,000 bushels of corn and 5,000 bushels of oats. Combined output for the two countries would, therefore, be 6,000 bushels of corn and 7,000 bushels of oats. If the two countries do trade, each will completely specialize in producing the crop for which it has a comparative advantage. If trade occurs, combined output for the two countries will increase by

A. 8,000 bushels of corn and 10,000 bushels of oats.

B. 5,000 bushels of corn and 7,000 bushels of oats

C. 3,000 bushels of corn and 3,000 bushels of oats.

D. 2,000 bushels of corn and 3,000 bushels of oats.

E. 0 bushels of corn and 0 bushels of oats.