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Assume That by Devoting All Its Resources to the Production

Question 275

True/False

Assume that by devoting all its resources to the production of X, nation Alpha can produce 20 units
of X. By devoting all its resources to Y, Alpha can produce 30Y. Comparable figures for nation Beta
are 60X and 40Y. Alpha would prefer terms of trade at, or close to, 1X = 2/3Y.

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