Assume That by Devoting All of Its Resources to the Production

question 131

Multiple Choice

Assume that by devoting all of its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all of its resources to Y, Alpha can produce 60Y. Comparable figures for
Nation Beta are 60X and 40Y. We can conclude that

• A) the terms of trade will be 3X equals 1Y.
• B) Alpha should specialize in Y and Beta in X.
• C) Alpha should specialize in X and Beta in Y.
• D) there is no basis for mutually beneficial specialization and trade.

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Definitions:

Society

A group of individuals living together in a more or less ordered community, often sharing common cultural and social institutions.

Benefits

Advantages or profits gained from something, such as a job, policy, or activity.

Holistic Critical Thinking

An approach to critical thinking that considers the whole context, including varied perspectives and interrelated factors.

Scoring Rubric

A guide used for assessing the quality of tasks or performances, detailing the criteria and standards for different levels of achievement.