Production Possibilities Data for Two Countries, Alpha and Beta, Which

question 125

Multiple Choice

Production possibilities data for two countries, Alpha and Beta, which have populations of equal size. Refer to the above data.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.