Assume That by Devoting All Its Resources to the Production

question 63

True/False

Assume that by devoting all its resources to the production of X, nation Alpha can produce 20 units
of X. By devoting all its resources to Y, Alpha can produce 30Y. Comparable figures for nation Beta
are 60X and 40Y. There is no basis for trade between Alpha and Beta, because Beta has an
absolute advantage in the production of both goods.

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Definitions:

Apprentice

A beginner or someone who is in the early stages of learning a trade or profession, often under the guidance of a master.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors, leading to specialized production and trade benefits.

Geegaws

Inexpensive, showy trinkets or novelty items.

Doodads

Informal term for small, often decorative objects with no specific utility or function.