Use the Following to Answer Question(s): the Production of Tires

question 184

Multiple Choice

Use the following to answer question(s) : The Production of Tires and Radios

-(Exhibit: The Production of Tires and Radios) Assuming constant costs in the neighborhood of their current levels of production, the exhibit shows the number of tires each country would have to forgo in order to produce the additional radios indicated.Further assume that the only input is labor and that it remains fully employed.The cost to country Y of producing an additional radio is _______ tire(s) .

• A) 1/3
• B) 1/2
• C) 2
• D) 3

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Definitions:

Dopamine

A neurotransmitter associated with movement, attention, learning, and the brain's pleasure and reward system.

Adrenaline

A hormone and neurotransmitter produced by the adrenal glands that increases heart rate, muscle strength, blood pressure, and sugar metabolism, often associated with the 'fight or flight' response.

Social Exchange Theory

The theory that our social behavior is an exchange process, the aim of which is to maximize benefits and minimize costs.

Equity Theory

A theory of motivation that proposes individuals are motivated by a sense of fairness in the reward-to-effort ratio compared to others.