Assume That by Devoting All Its Resources to the Production

question 161

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 60Y. Comparable figures for nation Beta are 60X and 40Y. The terms of trade will be at or within the 1X = 1½Y to 1X = ⅔Y range.

---

Definitions:

CCA Class

Refers to the categories under the Canadian tax system specifying the depreciation rate that can be claimed on assets for tax purposes.