Assume That by Devoting All of Its Resources to the Production

question 153

Multiple Choice

Assume that by devoting all of its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all of its resources to Y, Alpha can produce 60Y. Comparable figures for nation Beta are 60X and 40Y. We can conclude that

• A)the terms of trade will be 3X equals 1Y.
• B)Alpha should specialize in Y and Beta in X.
• C)Alpha should specialize in X and Beta in Y.
• D)there is no basis for mutually beneficial specialization and trade.

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Definitions:

Blistered

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Second Degree

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Arrector Pili Muscles

Small muscles attached to hair follicles that, when contracted, cause the hair to stand on end, known as "goosebumps."

Keratinization

The process by which cells fill with keratin protein, die, and form tough, protective layers in the skin, hair, and nails.