Use the Following to Answer Questions

question 186

Multiple Choice

Use the following to answer questions:
Figure: The Production Possibilities for Two Countries
-(Figure: The Production Possibilities for Two Countries) Look at the figure The Production Possibilities for Two Countries. If Indonesia and Malaysia trade 1 radio for 1.5 tires, the most that Indonesia can consume is _____ radios and _____ tires, while the most that Malaysia can consume is _____ radios and _____ tires.

• A)300; 600; 800; 200
• B)1,200; 400; 800; 200
• C)400; 600; 1,200; 600
• D)600; 600; 600; 600

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Definitions:

Tying Agreements

Arrangements where the seller conditions the sale of one product on the purchase of another product.

Per Se Violations

Actions or practices that are considered automatically illegal under anti-trust laws, without needing to prove harm.

Tying Agreement

A contractual agreement requiring a buyer to purchase an unwanted product or service to obtain a desired one, often seen as anti-competitive.

Videocassette Recorders

Devices used to record television programs and play them back through a television, using magnetic tape cassettes.