Alpha Can Produce Either 18 Oranges or 9 Apples an Hour

question 13

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. If the terms of trade are established as 1 apple for 4 oranges, then:

• A) there are no incentives for Beta to engage in international specialization and trade with Alpha.
• B) it is in the interest of Beta to grow oranges and trade for apples.
• C) it is in the interest of both countries to specialize and trade with one another.
• D) there are no incentives for Alpha or Beta to specialize and trade with one another.

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Definitions:

Suspended Particles

Tiny solid or liquid particles that are suspended in air or water, which can be harmful to human health and the environment when inhaled or ingested.

Pollutants

Substances introduced into the environment that cause harm or discomfort to the ecosystem or living organisms, including chemicals, waste materials, and noise.

Foam Insulation

A type of building insulation that is made from various types of foam and is used to reduce heat transfer.

Colourless Gas

A gas that does not have any color visible to the human eye, which can be natural or man-made.