Exhibit 28-1 Alpha can produce either 18 tons of oranges or 9 tons of apples in a year,while Omega can produce either 16 tons of oranges or 4 tons of apples.
Refer to Exhibit 28-1.Which of the following statements is true?
A) Alpha should export to Omega, but Omega should not export to Alpha.
B) Since Alpha has an absolute advantage in both goods, no mutual gains from trade are possible.
C) If Alpha specializes in growing apples and Omega specializes in growing oranges, they could both gain by specialization and trade.
D) If Alpha specializes in growing oranges and Omega specializes in growing apples, they could both gain by specialization and trade.
Correct Answer:
Verified
Q3: When a country allows trade and becomes
Q22: When a country allows trade and becomes
Q29: Mutually beneficial trade will occur whenever the
Q31: Exhibit 28-1 Alpha can produce either 18
Q33: In Artland the opportunity cost of producing
Q34: In Artland the opportunity cost of producing
Q35: Exhibit 28-1 Alpha can produce either 18
Q37: Which of the following is not a
Q38: Exhibit 28-1 Alpha can produce either 18
Q41: Exhibit 28-2 Karl can produce either 10
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents