Suppose That a Worker in Radioland Can Produce Either 4

question 185

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,then each country's maximum consumption of new radios and televisions per year will be

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

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Definitions:

Monetary Policy

A central bank's management of money supply and interest rates to achieve macroeconomic objectives like controlling inflation, consumption, growth, and liquidity.

Automatic Stabilizers

Strategies and programs intended to stabilize variations in a country's economic activities without direct involvement from government officials or policy makers.

Top Marginal Rate

The highest rate of tax applied to the last and highest portion of income for taxpayers, often affecting those in the highest income brackets.

Federal Personal Income Tax

Is a tax imposed by the federal government on the income of individuals, with the amount owed based on income level, filing status, and available deductions and credits.