Table 9-12 Output Per Hour Production and Production

question 107

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 swords will Morocco gain compared to the "without trade" numbers?

• A) 0
• B) 15
• C) 60
• D) 75

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Definitions:

Compounded Semi-annually

The process of calculating interest on an investment or loan every six months on both the initial principal and previously accumulated interest.

Purchase Price

The amount of money paid to buy a good, service, or asset.

Perpetuity

A financial instrument that provides indefinite payments at fixed intervals, theoretically lasting forever.

Compounded Monthly

The process where interest is calculated on a monthly basis and added to the principal, allowing it to earn interest in subsequent months.