Suppose That a Worker in Radioland Can Produce Either 4

question 166

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 5 televisions per year. Each nation has 100 workers. If Radioland trades 100 televisions to Teeveeland in exchange for 100 radios each year, what is the impact on each country's maximum consumption of new radios and televisions per year?

• A) higher than it would be in the absence of trade because of the gains from trade
• B) the same as it would be in the absence of trade
• C) less than it would be in the absence of trade because neither country is specializing in the product for which it has a comparative advantage
• D) less than it would be in the absence of trade because Teeveeland has an absolute advantage in both goods and so would lose if it trades with Radioland

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Definitions:

Operant Conditioning

An approach to education that utilizes incentives and penalties to shape behavior.

Instrumental Conditioning

A learning process in which an individual alters behavior due to the association of actions with punishments or rewards.

Classical Conditioning

The process of learning where, through continuous pairing, a reaction initially provoked by the second of two stimuli is eventually provoked by the first stimulus.

Preparedness

The state of being readily equipped or mentally ready to handle situations or to undertake specific tasks.