Suppose That a Worker in Radioland Can Produce Either 4

question 81

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

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Definitions:

Expected Return

The anticipated value or profit that an investment is predicted to generate.

Benchmark Rate

The standard interest rate against which other borrowing or lending rates are measured, often set by central banks.

CAPM

The Capital Asset Pricing Model, a theory that describes the relationship between systematic risk and expected return for assets, often used in the pricing of risky securities.

Financial Managers

Professionals responsible for managing the financial health of an organization, including planning, organizing, controlling, and monitoring financial resources.