The Tables Give Production Possibilities Data for Two Countries, Alpha ${ \text { Alpha's production possibilities } }$

question 169

Multiple Choice

The tables give production possibilities data for two countries, Alpha and Beta, which have populations of equal size.
${ \text { Alpha's production possibilities } }$
$\begin{array}{l}\begin{array} { | l | c | c | c | c | c | } \hline & A & B & C & D & E \\\hline \text { Fish (Tons) } & 80 & 60 & 40 & 20 & 0 \\\hline \text { Chips (Tons) } & 0 & 5 & 10 & 15 & 20 \\\hline\end{array}\\\\\\{ \text { Beta's production possibilities } } \\\begin{array} { | l | c | c | c | c | c | } \hline & A & B & C & D & E \\\hline \text { Fish (Tons) } & 240 & 180 & 120 & 60 & 0 \\\hline \text { Chips (Tons) } & 0 & 10 & 20 & 30 & 40 \\\hline\end{array}\end{array}$ The given data show that

• A) Beta has a comparative advantage in producing chips.
• B) Alpha has a comparative advantage in catching ?sh.
• C) Alpha is subject to constant costs and Beta is subject to increasing costs.
• D) Beta is more e?cient than Alpha both in catching ?sh and in producing chips.

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Definitions:

Variable

A characteristic, number, or quantity that can be measured or quantified and can vary among subjects being observed.

Height

The measurement of an object or person from base to top.

Example

A representative part or a single item from a larger whole or group, especially when used to illustrate or explain a topic.

Inherent Zero

A zero point that indicates an absence of the quantity under measurement, giving a true zero value meaning in the context.