Table 19-12
Production and
Consumption Production
Without Trade with Trade

question 139

Multiple Choice

Table 19-12
Production and
Consumption Production
Without Trade With Trade
$$\begin{array} { | l | l | l | l | l | l | } \hline & \text { Swards } & \text { Beltr } & & \text { Svards } & \text { Beltr } \\\hline \text { Estoria } & 100 & 50 && 200 & 0 \\\hline \text { Morocco } & 50 & 40 && 0 & 120 \\\hline\end{array}$$
Estonia and Morocco can produce both swords and belts.Table 19-12 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 19-12.If the actual terms of trade are 1 belt for 1.5 swords and 70 belts are traded,how many belts will Morocco gain compared to the "without trade"numbers?

• A)10
• B)20
• C)70
• D)80

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Definitions:

Foreign Currency

Currency used in a country other than one's own, often requiring exchange for domestic currency in international trade or finance.

Foreign Exchange Gain

A profit arising from a change in exchange rates when foreign currency holdings are valued at a higher rate.

Foreign Exchange Gain

A profit resulting from the appreciation of one currency against another in the foreign exchange market.

U.S. Dollars

The currency of the United States, commonly used as a standard unit of currency in international markets.