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Table 14-2 Alpha Can Produce Either 18 Oranges or 9 Apples an Apples

Question 6

Multiple Choice

Table 14-2
Alpha can produce either 18 oranges or 9 apples an hour, while Omega can produce either 16 oranges or 4 apples an hour.
-Refer to Table 14-2.Which of the following best describes the situation if terms of trade between the two countries are established as 1 apple for 2 oranges?


A) There is no incentive for Omega to engage in international specialization and trade of apples and oranges.
B) There is no incentive for Alpha to specialize and trade with Omega.
C) It is in the interest of Omega to grow oranges and trade for apples.
D) It is in the interest of both countries to specialize and trade with one another.

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