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AP Macroeconomics/Unit 1: Basic Economic Concepts
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Comparative Advantage and Trade Outcomes
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Assume Country X can produce a maximum of 100 units of food or 50 units of clothing, while Country Y can produce a maximum of 60 units of food or 60 units of clothing. If the two countries specialize according to comparative advantage and then trade, which of the following outcomes would be impossible?

A

Country X consuming 80 food and 10 clothing

B

Both countries consuming inside their original PPCs

C

Total consumption exceeding total production without trade

D

Country Y consuming 30 food and 40 clothing

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