Assume That by Devoting All Its Resources to the Production

question 111

True/False

Assume that by devoting all its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all its resources to Y, Alpha can produce 60 Y. Comparable figures for nation Beta are 60 X and 40 Y. Beta would prefer terms of trade at, or close to, 1X = 1½Y.

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Definitions:

Cloaca

In early embryos, the endodermally lined chamber into which the hindgut and allantois empty.

Coelom

The fluid-filled cavity within the body of most multicellular animals, surrounded by a mesothelium, that houses and protects internal organs.

Allantois

An embryonic membrane involved in the early fluid exchange between the embryo and the yolk sac.

Hindgut

The posterior part of the alimentary canal in some animals, including the distal colon and rectum in humans.