Table 14-2 Alpha Can Produce Either 18 Oranges or 9 Apples an Apples

Table 14-2
Alpha can produce either 18 oranges or 9 apples an hour, while Omega can produce either 16 oranges or 4 apples an hour.
-Refer to Table 14-2.Which of the following best describes the situation if terms of trade between the two countries are established as 1 apple for 4 oranges?

A) It is in the interest of both countries to specialize and trade with one another.
B) There is no incentive for Omega to engage in international specialization and trade with Alpha.
C) It is in the interest of Omega to grow oranges and trade for apples.
D) There is no incentive for Alpha or Omega to specialize and trade with one another.

Correct Answer:

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