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

---

Definitions:

Gesture-Call System

A form of communication seen in primates that combines gestural signals and vocalizations to convey messages.

Emotions

Complex psychological states involving physiological arousal, expressions, and cognitive interpretations.

Intentions

Plans or commitments to carry out a particular action in the future.

Nonverbal Communication

The process of conveying a message or information without the use of spoken language, including through gestures, facial expressions, posture, and other visual cues.