Solved

 Alpha’s production possibilities { \text { Alpha's production possibilities } } The Tables Give Production Possibilities Data for Two Countries, Alpha

Question 221

Multiple Choice

 Alpha’s production possibilities { \text { Alpha's production possibilities } }
ABCDE Fish (Tons)  806040200 Chips (Tons)  05101520 Beta’s production possibilities ABCDE Fish (Tons)  240180120600 Chips (Tons)  010203040\begin{array}{l}\begin{array} { | l | c | c | c | c | c | } \hline & A & B & C & D & E \\\hline \text { Fish (Tons) } & 80 & 60 & 40 & 20 & 0 \\\hline \text { Chips (Tons) } & 0 & 5 & 10 & 15 & 20 \\\hline\end{array}\\\\\\{ \text { Beta's production possibilities } } \\\begin{array} { | l | c | c | c | c | c | } \hline & A & B & C & D & E \\\hline \text { Fish (Tons) } & 240 & 180 & 120 & 60 & 0 \\\hline \text { Chips (Tons) } & 0 & 10 & 20 & 30 & 40 \\\hline\end{array}\end{array} The tables give production possibilities data for two countries, Alpha and Beta, which have populations of equal size. Beta


A) should specialize in catching ?sh and trade with Alpha for chips.
B) should specialize in producing chips and trade with Alpha for ?sh.
C) will not realize gains from specialization and trade.
D) will export both ?sh and chips to Alpha.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions