Table 9-12 Output Per Hour Production and Production

question 215

Multiple Choice

Table 9-12
Output per hour Production and Production
of work Consumption without Trade with Trade
Estonia and Morocco can produce both swords and belts. Each country has a total of 40 available labor hours for the production of swords and belts. Table 9-12 shows the output per hour of work, the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 9-12. With trade, what is the total gain in belt production?

• A) 20
• B) 40
• C) 60
• D) 120

Evaluate the effectiveness of various types of welfare programs.

Understand the concept of utility and its application in economics.

Interpret and assess tax systems, including negative income tax.

Explain the role of labor market economics in discussions about minimum wage and employment.

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Definitions:

Currency

A system of money in general use in a particular country or region.

S&P E-Mini Futures

Financial contracts that represent a portion of the standard S&P futures contracts, making them accessible to more investors due to their smaller size.

Listed Price

The official price at which a security is traded on a stock exchange.

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, used as a financial instrument for hedging or speculation.