Exhibit 28-1 Alpha Can Produce Either 18 Tons of Oranges

question 144

Multiple Choice

Exhibit 28-1 Alpha can produce either 18 tons of oranges or 9 tons of apples in a year,while Omega can produce either 16 tons of oranges or 4 tons of apples.
Refer to Exhibit 28-1.If the terms of trade are established as 1 ton of apples for 2 tons of oranges:

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

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Definitions:

Finite Number

A number that is countable and limited in value, as opposed to infinite numbers which have no end.

Infinitely

Without limit or end; extending beyond measure or comprehension.

Impossible

Refers to something that cannot be done or achieved within the existing conditions or limits.

Hasty Generalization

A logical fallacy where a conclusion is not logically justified by sufficient or unbiased evidence, typically involving conclusions drawn from an inadequate sample size.