The accompanying table gives domestic supply and demand schedules for a product. Suppose that the world price of the product is $1. $\begin{array}{|c|c|c|} \hline\text { Ouantity }&&\text { Ouantity }\\ (\text { Supplied }&&\text { Demanded }\\ \hline \text { (Domestic) } & \text { Price } & \text { (Domestic) } \\ \hline 12 & \$ 5 & 2 \\ \hline 10 & 4 & 4 \\ \hline 7 & 3 & 7 \\ \hline 4 & 2 & 11 \\ \hline 1 & 1 & 16 \\ \hline \end{array}$ With a $1-per-unit tariff, the quantities sold by foreign and domestic producers, respectively, will be

A) 1 unit and 15 units. B) 7 units and 4 units. C) 11 units and 4 units. D) indeterminate. A) 1 unit and 15 units. B) 7 units and 4 units. C) 11 units and 4 units. D) indeterminate.

Answer the question on the basis of the accompanying production possibilities tables for two countries, Latalia and Trombonia. $ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$\text { Latalia's production possibilities }$ $\begin{array}{c|c|c|c|c|c} & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\ \hline \text { Pork (Tons) } & 4 & 3 & 2 & 1 & 0 \\ \hline \text { Beans (Tons) } & 0 & 5 & 10 & 15 & 20 \end{array}$ $ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$\text { Trombonia's production }$ $ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$\text { possibilities }$ $\begin{array}{c|c|c|c|c|c} \hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\ \hline \text { Pork (Tons) } & 8 & 6 & 4 & 2 & 0 \\ \hline \text { Beans (Tons) } & 0 & 6 & 12 & 18 & 24 \\ \hline \end{array}$ If these two nations specialize on the basis of comparative advantage,

A) Trombonia will produce beans and Latalia will produce pork. B) Trombonia will produce both beans and pork. C) Latalia will produce both beans and pork, and Trombonia will produce neither. D) Latalia will produce beans, and Trombonia will produce pork. A) Trombonia will produce beans and Latalia will produce pork. B) Trombonia will produce both beans and pork. C) Latalia will produce both beans and pork, and Trombonia will produce neither. D) Latalia will produce beans, and Trombonia will produce pork.

A) has increased the standard of living in the North African member nations. B) benefits workers in the participating nations but hurts consumers by raising prices. C) allows completely unrestricted movement of goods, services, and resources between the member nations. D) has reduced most trade barriers between Canada, Mexico, and the United States. A) has increased the standard of living in the North African member nations. B) benefits workers in the participating nations but hurts consumers by raising prices. C) allows completely unrestricted movement of goods, services, and resources between the member nations. D) has reduced most trade barriers between Canada, Mexico, and the United States.

The accompanying tables give production possibilities data for Gamma and Sigma. All data are in tons. Gamma's production possibilities $\begin{array}{c|c|c|c|c|c} & \mathrm{A} & \mathrm{B} & \mathrm{C} & \mathrm{D} & \mathrm{E} \\ \hline \text { Tea } & 120 & 90 & 60 & 30 & 0 \\ \hline \text { Pots } & 0 & 30 & 60 & 90 & 120 \\ \hline \end{array}$ Sigma's production possibilities $\begin{array}{c|c|c|c|c|c} & \mathrm{A} & \mathrm{B} & \mathrm{C} & \mathrm{D} & \mathrm{E} \\ \hline \text { Tea } & 40 & 30 & 20 & 10 & 0 \\ \hline \text { Pots } & 0 & 30 & 60 & 90 & 120 \\ \hline \end{array}$ Assume that before specialization and trade, Gamma and Sigma both chose production possibility "C." Now if each specializes according to comparative advantage, the gains from specialization and trade will be

A) 40 tons of pots. B) 20 tons of tea and 20 tons of pots. C) 20 tons of tea. D) 40 tons of tea. A) 40 tons of pots. B) 20 tons of tea and 20 tons of pots. C) 20 tons of tea. D) 40 tons of tea.