The Following Is the Production Possibilities Data for Two Countries,Alpha

question 177

Multiple Choice

The following is the Production possibilities data for two countries,Alpha and Beta,which have populations of equal size.

-The above data show that:

• A) Beta has a comparative advantage in producing chips.
• B) Alpha has a comparative advantage in catching fish.
• C) Alpha is subject to constant costs and Beta is subject to increasing costs.
• D) Beta is more efficient than Alpha.

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Definitions:

Proportional

A relationship or ratio between two quantities where they change at the same rate.

Tax Rate

The proportion of income that a person or business must pay in taxes.

Digressive

Characteristics of a process or system that decreases in intensity or rate as it progresses.

Social Security (FICA) Tax

A mandatory payroll tax funded by both employers and employees to finance Social Security benefits.