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

question 217

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.All of the following are terms of trade that could possibly benefit both countries except

• A)1/5 of a hat : 1 clock
• B)1/3 of a hat : 1 clock
• C)1/2 of a hat : 1 clock
• D)3/4 of a hat : 1 clock

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Definitions:

Budgeted Sales

Forecasted revenue figures for a specific period based on projected sales volume and selling price, crucial for financial planning and performance evaluation.

Budgeted Production

The quantity of products that a company plans to produce over a specific period, as outlined in the budgeting process.

Direct Labor-Hours

The cumulative hours that employees engaged in the production process have worked.

Direct Labor Rate

The cost per hour for direct labor involved in producing goods or services.