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Assume That One Day's Labor in Argentina Can Produce Either

Question 44

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


A) 16 wine; 8 cloths
B) 16 wine; 16 cloths
C) 12 wine; 12 cloths
D) 8 wine; 16 cloths

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