Table 19-11
Production and
Consumption Production
Without Trade with Trade

question 289

Multiple Choice

Table 19-11
Production and
Consumption Production
Without Trade With Trade
$$\begin{array} { | l | l | l | l | l | l | } \hline & \text { Clucks } & \text { Huts } & & \text { Clocks } & \text { Hats } \\\hline \text { Derrnark } & 900 & 150 && 1,200 & 0 \\\hline \text { Belize } & 150 & 100 && 0 & 400 \\\hline\end{array}$$
Denmark and Belize can produce both clocks and hats.Table 19-11 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 19-11.Prior to trade,what was the opportunity cost to produce 1 clock in Belize?

• A)1/6 of a hat
• B)2/3 of a hat
• C)1.5 hats
• D)6 hats

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenue, expenses, and profits.

Revenues

Earnings derived from standard business activities, factoring in reductions and allowances for goods returned.

Expenses

Outflows or other uses of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major operations.

Liability

Legal obligations related to finances that a business incurs throughout its operational processes.