Table 9-12 Output Per Hour Production and Production

question 239

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. If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded, how many belts will Estonia consume?

• A) 50
• B) 70
• C) 90
• D) 120

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Definitions:

Austria

A landlocked country in Central Europe, known for its mountainous terrain, historic cities, and rich cultural heritage.

Italy

A country located in southern Europe, known for its rich history, art, architecture, fashion, and cuisine, forming a boot-shaped peninsula into the Mediterranean Sea.

Value Creation

The process by which goods or services are provided that offer value to customers, thereby generating benefit to the producer or provider.

Comparative Advantage

a principle of economics that states a country or entity should produce goods and services for which it has a lower opportunity cost than its trade partners.