Question

Suppose that a worker in Caninia can produce either 2 blankets or 8 meals per day, and a worker in Felinia can produce either 5 blankets or 1 meal per day. Each nation has 10 workers. For many years, the two countries traded, each completely specializing according to their respective comparative advantages. Now war has broken out between them and all trade has stopped. Without trade, Caninia produces and consumes 10 blankets and 40 meals per day and Felinia produces and consumes 25 blankets and 5 meals per day. The war has caused the combined daily output of the two countries to decline by
a. 25 blankets and 40 meals.
b. 50 blankets and 80 meals.
c. 15 blankets and 35 meals.
d. 35 blankets and 45 meals.

Answer 1

Answer:

c. 15 blankets and 35 meals

Explanation:

Based on the information given the war has caused the combined daily output of both the two countries to decline by 15 blankets and 35 meals which is calculated as:

Calculation for Declined in combined daily output for both countries

Countries Production Consumption

Caninia 10 blankets 40 meals per day

Felinia 25 blankets 5 meals per day

=Declined 15 blankets and 35 meals per day

Therefore the combined daily output of both the two countries will decline by 15 blankets and 35 meals per day