Employing All Its Available Resources, Nation Alpha Can Produce Either

question 218

Multiple Choice

Employing all its available resources, Nation Alpha can produce either 800 units of chemicals or 1,600 units of clothing. Nation Beta can produce either 200 units of chemicals or 800 units of clothing.

• A)Nation Alpha has a comparative advantage in producing clothing.
• B)Nation Beta has a comparative advantage in producing chemicals.
• C)Nation Alpha has a comparative advantage in producing chemicals.
• D)Nation Beta is the high-cost producer of clothing.

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Definitions:

Tax

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Price Ceiling

A Price Ceiling is a government-imposed limit on how high a price can be charged for a product, intended to protect consumers from exorbitant prices.

Supply Curve

A graph showing the relationship between the quantity of a good that producers are willing to sell and the price of the good.

Gasoline

A petroleum-derived flammable liquid primarily used as fuel in internal combustion engines.