Suppose That a Worker in Radioland Can Produce Either 4

question 190

Multiple Choice

Suppose that a worker in Radioland can produce either 4 radios or 1 television per year, and a worker in Teeveeland can produce either 2 radios or 4 televisions per year. Each nation has 100 workers. Also suppose that each country completely specializes in producing the good for which it has a comparative advantage. If Radioland trades 100 radios to Teeveeland in exchange for 100 televisions each year, what is each country's maximum consumption of new radios and televisions per year?

• A) 100 televisions and 200 radios in Radioland, and 100 radios and 200 televisions in Teeveeland
• B) 300 televisions and 100 radios in Teeveeland, and 300 radios and 100 televisions in Radioland
• C) 300 televisions and 100 radios in Radioland, and 300 radios and 100 televisions in Teeveeland
• D) 400 televisions and 100 radios in Teeveeland, and 400 radios and 100 televisions in Radioland

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Definitions:

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