Assume That by Devoting All Its Resources to the Production

question 157

True/False

Assume that by devoting all its resources to the production of X, nation Alpha can produce 40 units of X.By devoting all its resources to Y, Alpha can produce 60Y.Comparable figures for nation Beta are, 60X and 40Y.Refer to the above information.Beta would prefer terms of trade at, or close to, 1X = 1 1/2 Y.