Suppose That a Worker in Agland Can Produce Either 10

question 124

Multiple Choice

Suppose that a worker in Agland can produce either 10 units of organic grain or 2 units of incense per year, and a worker in Zenland can produce either 5 units of organic grain or 15 units of incense per year. There are 10 workers in Agland and 20 workers in Zenland. Currently the two countries do not trade. Agland produces and consumes 50 units of grain and 10 units of incense per year. Zenland produces and consumes 100 units of grain and no incense per year. The combined output of the two countries is therefore 150 units of grain and 10 units of incense per year. If the two countries decided to trade and completely specialize in producing the good for which each has a comparative advantage, what would the combined yearly output of the two countries be?

• A) 50 units of grain and 40 units of incense
• B) 100 units of grain and 300 units of incense
• C) 150 units of grain and 20 units of incense
• D) 200 units of grain and 150 units of incense

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Definitions:

Union Actions

Activities undertaken by labor unions, including strikes and negotiations, aimed at securing better conditions for their members.

Bargaining Unit

A group of employees with a clear and identifiable community of interests who are represented by a single labor union in collective bargaining and labor negotiations.

Union Representation

The act of a labor union serving as an intermediary between employees and employers to negotiate wages, work conditions, and other employment terms.

Worker Thread

In computing, a smaller sequence of programmed instructions that can be executed independently, particularly in the context of multi-threading within applications.