Use the Figure Below to Answer the Following Questions

question 17

Multiple Choice

Use the figure below to answer the following questions.
Table 2.4.1
The planets of Vulcan and Romulus each produce goods X and Y.
The following table gives points on their production possibilities frontiers.

-Refer to Table 2.4.1. For Romulus, the opportunity cost of producing an additional unit of Y is

• A)2/3 units of X.
• B)1/2 unit of X.
• C)2 units of X.
• D)3 units of X.
• E)3/2 units of Y.

---

Definitions:

Protectionism

Economic policy of restricting imports from other countries through methods such as tariffs and import quotas, to protect domestic industries.

Domestic Producers

Local manufacturers or growers of goods within a country's borders.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Trade Gains

Benefits that countries obtain from engaging in international trade, such as increased variety of goods and specialization in production.