The tables give production possibilities data for two countries, Alpha and Beta, which have populations of equal size.
The domestic opportunity cost of
A) producing a ton of chips in Alpha is 1/5 of a ton of ?sh.
B) producing a ton of chips in Beta is 6 tons of ?sh.
C) catching a ton of ?sh in Alpha is 5 tons of chips.
D) catching a ton of ?sh in Beta is 6 tons of chips.
Correct Answer:
Verified
Q35: If a nation has a comparative advantage
Q36: The tables give production possibilities data
Q37: In the theory of comparative advantage, a
Q38: Q39: The fact that international specialization and trade Q41: In a two-nation model, the equilibrium world Q42: A nation's import demand curve for a Q43: Suppose the domestic price (no-international-trade price) of Q44: The law of increasing opportunity costs Q45: ![]()
A) applies![]()
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