The Following Is the Production Possibilities Data for Two Countries

question 94

Multiple Choice

The following is the Production possibilities data for two countries, Alpha and Beta, which have populations of equal size. The above data show that:

• A)Beta has a comparative advantage in producing chips.
• B)Alpha has a comparative advantage in catching fish.
• C)Alpha is subject to constant costs and Beta is subject to increasing costs.
• D)Beta is more efficient than Alpha.

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Definitions:

Revenues

The total income generated from normal business operations and other activities like investments, calculated before any expenses are deducted.

Generally Accepted Accounting Principles

A framework of accounting standards, principles, and procedures that companies follow to compile their financial statements.

Economic Events

Any occurrences or transactions that affect the financial position of a company, including sales, purchases, and investments.

Income Tax Regulations

The rules and laws that govern how income taxes are calculated, collected, and enforced by the tax authorities.