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-Use the Above Table

Question 292

Multiple Choice

  -Use the above table. Assuming constant opportunity costs, if countries Alpha and Beta specialize based on comparative advantage, then they will trade if the rate of exchange is A) 5 knives for 1 fork, and Alpha imports forks. B) 0.5 knives for 1 fork, and Alpha imports forks. C) 0.5 fork for 1 knife, and Beta imports knives. D) 6 forks for 1 knife, and Beta imports knives.
-Use the above table. Assuming constant opportunity costs, if countries Alpha and Beta specialize based on comparative advantage, then they will trade if the rate of exchange is


A) 5 knives for 1 fork, and Alpha imports forks.
B) 0.5 knives for 1 fork, and Alpha imports forks.
C) 0.5 fork for 1 knife, and Beta imports knives.
D) 6 forks for 1 knife, and Beta imports knives.

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