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.
Correct Answer:

Verified
Correct Answer:
Verified
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