Answer the Question on the Basis of the Following Production

question 19

Multiple Choice

Answer the question on the basis of the following production possibilities tables for countries Alpha and Beta: Alpha Production Possibilities:

$\begin{array} { l c c c c } & \underline { \mathrm { A } } & \underline { \mathrm { B } } & \underline { \mathrm { C } } & \underline{ \mathrm { D } } \\ \text { Product } X & 3 & 2 & 1 & 0 \\ \text { Product } Y & 0 & 4 & 8 & 12 \end{array}$

Beta Production Possibilities:

$\begin{array} { l c c c c } & \underline { \mathrm { A } } & \underline { \mathrm { B } } & \underline { \mathrm { C } } & \underline { \mathrm { D } } \\\text { Product } X &6&4&2&0\\\text { Product } Y & 0 & 4 & 8 & 12 \end{array}$ Refer to the tables.According to the concept of comparative advantage:

• A) Alpha should specialize in X;Beta,in Y.
• B) Beta should produce some X and some Y.
• C) Alpha should produce some X and some Y.
• D) Beta should specialize in X;Alpha,in Y.

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Definitions:

Credit Calculation

The process of determining the amount of credit that taxpayers are eligible to subtract directly from the taxes they owe to the government.

Nontaxable Social Security

Portions of Social Security benefits that are not subject to federal income tax under certain conditions.

AGI

Adjusted Gross Income; a measure of income calculated from your gross income and used to determine how much of your income is taxable.

Child and Dependent Care Credit

A tax credit in the U.S. for qualified expenses paid for the care of children under 13 or disabled dependents, enabling the taxpayer to work or look for work.