Answer the Question on the Basis of the Following Production

question 112

Multiple Choice

Answer the question on the basis of the following production possibilities data for two countries,Alpha and Beta,which have populations of equal size. $\begin{array}{c}\quad\quad\underline{\text { Alpha's Production Possibilities }}\\\begin{array}{lll} \\ \text {Fish (Tons) }\\ \text {Chips (Tons) } \end{array}\begin{array}{c}\underline{\text {A }}\\ 80 \\0\end{array}\begin{array}{c}\underline{\text {B }}\\ 60 \\5\end{array}\begin{array}{c}\underline{\text {C }}\\ 40 \\10\end{array}\begin{array}{c}\underline{\text {D }}\\20 \\15\end{array}\begin{array}{c}\underline{\text {E }}\\0 \\20 \end{array}\end{array}$

$\begin{array}{c}\quad\quad\underline{\text { Beta's Production Possibilities }}\\\begin{array}{lll} \\ \text {Fish (Tons) }\\ \text {Chips (Tons) } \end{array}\begin{array}{c}\underline{\text {A }}\\240 \\0\end{array}\begin{array}{c}\underline{\text {B }}\\ 180 \\10\end{array}\begin{array}{c}\underline{\text {C }}\\120 \\20\end{array}\begin{array}{c}\underline{\text {D }}\\60 \\30\end{array}\begin{array}{c}\underline{\text {E }}\\0 \\40 \end{array}\end{array}$


Refer to the given data.Assume the production possibilities in Beta double at alternatives A through E while remaining as shown in the table for Alpha.As a result,Beta should:

• A) continue to specialize in producing chips.
• B) continue to specialize in fishing.
• C) no longer specialize and trade.
• D) specialize both in fishing and in producing chips and sell the surplus to Alpha.

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