The Figure Below Shows Production Possibilities Curves for Tomatoes and Oranges

question 6

Multiple Choice

The figure below shows production possibilities curves for tomatoes and oranges in two prefectures in a country.

-Refer to the figure above. Suppose that Prefecture A produces at point W, while Prefecture B produces at point X. Could there be gains from trade (Prefecture A sells tomatoes to Prefecture B, and Prefecture B sells oranges to Prefecture B) ? Why or why not?

• A) Yes, because Prefecture A has a comparative advantage in tomato production beyond 1 billion pounds while Prefecture B has a comparative advantage in orange production beyond 800 million pounds.
• B) Yes, because Prefecture A produces more tomatoes while Prefecture B produces more oranges.
• C) No, because Prefecture A's opportunity cost of producing additional pounds of tomatoes at W is higher than Prefecture B's opportunity cost at X.
• D) No, because Prefecture A's opportunity cost of producing additional pound of oranges at W is higher than Prefecture B's opportunity cost at X.

---

Definitions:

Insurance Company

A business entity that provides financial protection or reimbursement against losses to individuals or entities, in exchange for premium payments.

DSM

The Diagnostic and Statistical Manual of Mental Disorders, a comprehensive classification system used by mental health professionals to diagnose and categorize mental disorders.

Psychological Disorder

A pattern of behavioral or psychological symptoms that impact multiple areas of life and create distress for the person affected.

Treatment Goals

Specific, measurable objectives set for a patient or client to achieve as a result of therapeutic intervention.