Suppose That a Worker in Radioland Can Produce Either 4

question 103

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,and each country specializes according to the principle of comparative advantage.If Radioland trades 100 televisions to Teeveeland in exchange for 100 radios each year,then each country's maximum consumption of new radios and televisions per year will be

• 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 in 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 it cannot benefit by trading with Radioland.

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Definitions:

Performance-Based Pay

A compensation strategy where employees are paid based on their performance or achievements.

Intrinsic Motivation

The internal desire to perform a task for its own sake, deriving personal satisfaction from the activity itself without external incentives.

Need for Self-Determination

Refers to the fundamental drive of individuals to control their own actions and decisions, seeking autonomy and self-regulation in their behavior.

Need for Purposefulness

Refers to the intrinsic human motivation to have a sense of meaning and intention in one's actions and life endeavors.