Use the Following to Answer Question(s): Production Possibilities in Alphaland

question 173

Multiple Choice

Use the following to answer question(s) : Production Possibilities in Alphaland and Omegaland

-(Exhibit: Production Possibilities in Alphaland and Omegaland) Which of the following statements is true?

• A) Despite Alphaland's greater ability to produce both goods, it can still gain from trade with Omegaland.
• B) Omegaland can't gain from trade with Alphaland.
• C) The country with a lower relative cost for a particular good has an absolute advantage.
• D) Mutually beneficial trade won't occur in this case, because Alphaland is so big.