Question: Use the following table to answer the question below. Dave's Production Possibilities Schedule Simon's Production Possibilities Schedule Pounds of Green Beans Pounds of Corn Pounds

  1. Use the following table to answer the question below.

Dave's Production Possibilities Schedule

Simon's Production Possibilities Schedule

Pounds of Green Beans

Pounds of Corn

Pounds of Green Beans

Pounds of Corn

0

160

0

80

20

120

40

60

40

80

80

40

60

40

120

20

80

0

160

0

Assume Dave consumes 40 pounds of green beans and 80 pounds of corn without trade. Also, assume that Simon consumes 80 pounds of green beans and 40 pounds of corn without trade. Suppose Simon and Dave specialize and that the terms of trade are 1 pound of green beans for 1 pound of corn. If Simon sells Dave 80 pounds of green beans, then the gains from trade for Simon are ______ pounds of green beans and ______ pounds of corn with trade and specialization.

  1. 40,40
  2. 0,40
  3. 20,20
  4. 40,0

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