Suppose That a Worker in Radioland Can Produce Either 4

question 103

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,and each country specializes according to the principle of comparative advantage.If Radioland trades 100 televisions to Teeveeland in exchange for 100 radios each year,then each country's maximum consumption of new radios and televisions per year will be

• 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 in 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 it cannot benefit by trading with Radioland.

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Definitions:

Aversive Conditioning

A form of conditioning that uses an unpleasant stimulus to stop or avoid an undesirable behavior.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, encouraging the repetition of desired behaviors.

Behavior Modification

A therapeutic approach that seeks to change potentially self-destructive or unhealthy behaviors through the systematic application of the principles of behaviorism.

Psychoanalysis

A therapeutic technique and theory of psychology developed by Sigmund Freud that emphasizes exploring unconscious motivations and conflicts to understand and alleviate psychological distress.