Table 14-2 Alpha Can Produce Either 18 Oranges or 9 Apples an Apples

question 40

Multiple Choice

Table 14-2
Alpha can produce either 18 oranges or 9 apples an hour, while Omega can produce either 16 oranges or 4 apples an hour.
-Refer to Table 14-2.Which of the following statements about Alpha and Omega is the most accurate?

• A)Since Alpha has an absolute advantage in both goods, no mutual gains from trade are possible.
• B)If Alpha specializes in growing oranges and Omega specializes in growing apples, they could both gain by specialization and trade.
• C)Alpha should export to Omega, but Omega should not export to Alpha.
• D)If Alpha specializes in growing apples and Omega specializes in growing oranges, they could both gain by specialization and trade.

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Definitions:

Ethical Perspective

A viewpoint or approach considering what is morally right or wrong in the context of decision-making or behavior.

Utility

In economics, utility refers to the satisfaction or benefit derived by consumers from consuming goods or services.

Liberty

The state of being free within society from oppressive restrictions imposed by authority on one's way of life, behavior, or political views.

Participative Leadership

A leadership style where decision-making is shared among the group, incorporating employee input in organizational decisions.