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

question 141

Multiple Choice

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

-(Exhibit: Production Possibilities in Alphaland and Omegaland) If the terms of trade established turn out to be 1 car for 1 computer, then:

• A) producers of computers in Alphaland will accept these terms, and, eventually, production in Alphaland will take place inside its production possibilities curve.
• B) producers of cars in Omegaland will produce more cars, and production in Omegaland will take place inside its production possibilities curve.
• C) computer producers in Omegaland will be displaced as cheaper computers arrive from Alphaland.
• D) car producers in Omegaland will be displaced as cheaper cars arrive from Alphaland.

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Definitions:

Fossil Fuels

These are natural fuels such as coal, oil, and natural gas, formed from the remains of living organisms and used for energy.

Nonrenewable Natural Resource

A natural resource, such as fossil fuels or minerals, that cannot be replaced or replenished once it is used, leading to potential depletion.

Timber

Wood that has been processed into beams and planks, a stage in the production process that precedes finished wood products.

Tin

A chemical element with the symbol Sn and atomic number 50, known for its malleability, ductility, and resistance to corrosion, used in various alloys and as a protective coating for other metals.