If each country were to rduce production of its comparative disadvantage good by 1 unit, ?

Question

world output of wine would rise by?

a. 1.5 unit

b. 3 units

c. 2 units

d. 3.5 units

Answer 1

a. 1.5 unit

(but it sort of best-fit guess - without empirical research)

It should be more than one for sure, but I don't believe that countries are so inefficient that it would rise productivity twice.

If in reality we are so far from optimal point on PPC/PPF, then it really huge waste of resources away from it's best use.

1.5 estimate in this case means that total efficiency would rice for +50%, while 2.0 would mean that potential is +100% or it can be doubled.

If we consider US against 50% poorest rest of the world, then output really can rise twice more for this 50% meaning that on average there could be not triple but +50% for the whole world, for instance:

Initial condition:

Developed countires (50%) output: 2

Underdeveloped countires (50%) output: 1

Total: 3, Average: 1.5

More comparative advantage engaged:

Developed countires (50%) output increased a bit: 2.5

Underdeveloped countires (50%) output doubled: 2

Total: 4.5, Average: 2.25

Increase 2.25/1.5=1.5 = +50%

Answer 2

This question does not make sense. The countries with comparative disadvantage in wine can reduce their wine output by one unit each and the released resources can be used to produce other goods. But the reduction in wine output in those countries will be matched by increased production of equivalent quantity of wine by countries enjoying comparative adbvantage in wine production.  The production of wine can increase more if there is demand for wine at the reduced price. But are you assuming free trade in all commodities or only wine. We need lot of information to answer your question and the alternatives given are not necessarily the best answer or correct answer.