Multiple Choice
Use the following to answer question(s) : Production Possibilities in Alphaland and Omegaland
-(Exhibit: Production Possibilities in Alphaland and Omegaland) Which of the following statements is true?
A) Despite Alphaland's greater ability to produce both goods, it can still gain from trade with Omegaland.
B) Omegaland can't gain from trade with Alphaland.
C) The country with a lower relative cost for a particular good has an absolute advantage.
D) Mutually beneficial trade won't occur in this case, because Alphaland is so big.
Correct Answer:
Verified
Correct Answer:
Verified
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