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.

Understand and identify examples of Parkinson's Law in organizational contexts.

Recognize industries that benefit from economies of scale and those that do not.

Understand the concept and implications of marginal cost in production.

Grasp the concept and effects of the law of diminishing returns in various sectors.

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Definitions:

Eating Disorder

A range of psychological disorders characterized by abnormal or disturbed eating habits, which can have serious health consequences.

High Neuroticism

A personality trait that indicates a higher tendency towards emotional instability, anxiety, moodiness, worry, and jealousy.

Low Extraversion

Characterized by being reserved, introspective, and less engaged in social activities.

Agoraphobia

An anxiety disorder characterized by an intense fear of being in places where escape might be difficult or that might lead to panic attacks.