Alpha Can Produce Either 18 Oranges or 9 Apples an Hour

question 14

Multiple Choice

Alpha can produce either 18 oranges or 9 apples an hour, while Beta can produce either 16 oranges or 4 apples an hour. Which of the following statements is true?

• A) Alpha should export to Beta, but Beta should not export to Alpha.
• B) Since Alpha has an absolute advantage in both goods, no mutual gains from trade are possible.
• C) If Alpha specializes in growing oranges and Beta specializes in growing apples, they could both gain by specialization and trade.
• D) If Alpha specializes in growing apples and Beta specializes in growing oranges, they could both gain by specialization and trade.

---

Definitions:

Biomass Fuels

Renewable energy sources derived from organic materials such as wood, waste, and alcohol fuels.

Sources Of Carbon

Origins or processes that release carbon into the atmosphere, including both natural and human activities.

Nitrogen

A chemical element with symbol N and atomic number 7, an essential nutrient for plants and a major component of the Earth's atmosphere.

Phosphorous

A chemical element essential for life, playing a key role in cellular energy transfer and the formation of DNA and RNA, but its excess in water bodies can lead to eutrophication.