ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Alpha can produce either 18 oranges or 9 apples an hour, while Beta can produce either 16 oranges or 4 apples an hour. If the terms of trade are established as 1 apple for 2 oranges, then:
Question 32 options:
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there are no incentives for Alpha to specialize and trade with Beta.
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it is in the interest of both countries to specialize and trade with one another.
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it is in the interest of Beta to grow oranges and trade for apples.
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there are no incentives for Beta to engage in international specialization and trade of apples and oranges.
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