-Use the Above Table

question 292

Multiple Choice

-Use the above table. Assuming constant opportunity costs, if countries Alpha and Beta specialize based on comparative advantage, then they will trade if the rate of exchange is

• A)5 knives for 1 fork, and Alpha imports forks.
• B)0.5 knives for 1 fork, and Alpha imports forks.
• C)0.5 fork for 1 knife, and Beta imports knives.
• D)6 forks for 1 knife, and Beta imports knives.