Table 9-11 Output Per Hour Production and Production

question 377

Multiple Choice

Table 9-11
Output per hour Production and Production
of work Consumption without Trade with Trade
Denmark and Belize can produce both clocks and hats. Each country has a total of 200 available labor hours for the production of clocks and hats. Table 9-11 shows the output per hour of work, the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 9-11. Which country has a comparative advantage in producing clocks?

• A) Denmark
• B) Belize
• C) both countries
• D) neither country

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Definitions:

Rate of Interest

The percentage of a loan accrued as interest to the borrower, commonly shown as an annual percent of the remaining loan balance.

Retirement Plan

A financial arrangement designed to replace employment income upon retirement, offering benefits like savings, investment, and tax advantages.

Discount Rate

The interest rate charged by central banks on loans to commercial banks, influencing monetary policy and the cost of borrowing.

Employee Benefit

An employee benefit is a form of compensation provided to employees in addition to their regular salaries or wages, including health insurance, retirement plans, and paid time off.