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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 4 oranges, then: there are no incentives for Beta to engage in international specialization and trade with Alpha. it is in the interest of Beta to grow oranges and trade for apples. it is in the interest of both countries to specialize and trade with one another. there are no incentives for Alpha or Beta to specialize and trade with one another.

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 4 oranges, then: there are no incentives for Beta to engage in international specialization and trade with Alpha. it is in the interest of Beta to grow oranges and trade for apples. it is in the interest of both countries to specialize and trade with one another. there are no incentives for Alpha or Beta to specialize and trade with one another.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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QUESTION 32 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 4 oranges, then: there are no incentives for Beta to engage in international specialization and trade with Alpha. it is in the interest of Beta to grow oranges and trade for apples. it is in the interest of both countries to specialize and trade with one another. there are no incentives for Alpha or Beta to specialize and trade with one another.
Transcribed Image Text:QUESTION 32 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 4 oranges, then: there are no incentives for Beta to engage in international specialization and trade with Alpha. it is in the interest of Beta to grow oranges and trade for apples. it is in the interest of both countries to specialize and trade with one another. there are no incentives for Alpha or Beta to specialize and trade with one another.
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