Table 9-11 Output Per Hour Production and Production

question 271

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. What is the opportunity cost to produce 1 clock in Belize?

• A) 1/2 of a hat
• B) 2/3 of a hat
• C) 1.5 hats
• D) 2 hats

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Definitions:

In-The-Money

This describes an option that has intrinsic value, being a call option with a strike price below the current market price or a put option with a strike price above the current market price.

Stock Price

The current market price at which a share of a company's stock can be bought or sold.

Intrinsic Value

The actual, inherent value of an asset, independent of its market price.