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

question 6

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 best describes the situation if terms of trade between the two countries are established as 1 apple for 2 oranges?

• A)There is no incentive for Omega to engage in international specialization and trade of apples and oranges.
• B)There is no incentive for Alpha to specialize and trade with Omega.
• C)It is in the interest of Omega to grow oranges and trade for apples.
• D)It is in the interest of both countries to specialize and trade with one another.

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