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

---

Definitions:

Actual Price

Refers to the real price at which a transaction takes place, considering any discounts or premiums, as opposed to a theoretical or listed price.

Minimum Acceptable Price

The lowest price that a seller is willing to accept for a good or service, ensuring that the sale covers production costs and desired profit margin.

Creative Destruction

A process in which technological progress and innovation render existing products or services obsolete, leading to economic development and growth.

Dominant Firms

Companies that hold a large portion of the market share within their industry, influencing the market's pricing and competitive landscape.