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

question 22

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 domestic opportunity cost of

• A) producing a ton of chips in Alpha is 1/5 of a ton of ?sh. \[1 / 5\]
• B) producing a ton of chips in Beta is 6 tons of ?sh.
• C) catching a ton of ?sh in Alpha is 5 tons of chips.
• D) catching a ton of ?sh in Beta is 6 tons of chips.

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Definitions:

Edgeworth Box

A diagram used in microeconomics to show the distribution of resources or outcomes in a two-person (or two-good) economy, illustrating potential areas of mutual benefit through trade.

Pareto Optimal

A situation in the allocation of resources where it's not feasible to benefit one person without harming another.

Utility Function

A mathematical representation that assigns a numerical value to different bundles of goods, indicating the level of satisfaction or happiness the consumer derives from their consumption.

Pareto Efficient

An economic state where it is impossible to make any one individual better off without making at least one individual worse off.