Use the following to answer question(s): Production Possibilities in Alphaland and Omegaland

-(Exhibit: Production Possibilities in Alphaland and Omegaland) Before trade, computer producers in Alphaland could exchange _______ computer(s) for _______ car(s).

Question

Use the following to answer question(s): Production Possibilities in Alphaland and Omegaland
 
-(Exhibit: Production Possibilities in Alphaland and Omegaland) Before trade, computer producers in Alphaland could exchange _______ computer(s) for _______ car(s).

Quizplus · Accepted Answer

Referring to the exhibit, the slope of the production possibilities curve for computer producers in Alphaland is equal to -3. This means that in order to produce one more car, they would have to give up producing three computers. Therefore, they could exchange 1 computer for 1/3 of a car.

Use the Following to Answer Question(s): Production Possibilities in Alphaland