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

-(Exhibit: Production Possibilities in Alphaland and Omegaland) If the terms of trade established turn out to be 1 car for 1 computer, then:
A) producers of computers in Alphaland will accept these terms, and, eventually, production in Alphaland will take place inside its production possibilities curve.
B) producers of cars in Omegaland will produce more cars, and production in Omegaland will take place inside its production possibilities curve.
C) computer producers in Omegaland will be displaced as cheaper computers arrive from Alphaland.
D) car producers in Omegaland will be displaced as cheaper cars arrive from Alphaland.
Correct Answer:
Verified
Q64: A country with a lower relative cost
Q65: Use the following to answer question(s): Production
Q66: If one country has the ability to
Q67: When a country specializes in the production
Q68: Use the following to answer question(s): Production
Q70: People participate in international trade basically because:
A)
Q71: Use the following to answer question(s): Production
Q72: Use the following to answer question(s): Production
Q73: Use the following to answer question(s): Production
Q74: If a country has a comparative advantage
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