Answer the next question on the basis of the following production possibilities data for two countries,Alpha and Beta,which have populations of equal size.
Assume the production possibilities in Beta double at alternatives A through E while remaining as shown in the table for Alpha.As a result Beta should:
A) continue to specialize in producing chips.
B) continue to specialize in fishing.
C) no longer specialize and trade.
D) specialize both in fishing and in producing chips and sell the surplus to Alpha.
Doubling all the production possibilities of one country will give the same ratios when calculating opportunity costs.This won't change the results,so Beta should still specialize in fishing.
Correct Answer:
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