Table 9-6 Output Per Hour Production and Production

question 76

Multiple Choice

Table 9-6
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 9-6 shows the output per hour of work, the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 9-6.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:

Disposable Income

The funds set aside by households for spending and saving after income tax subtractions.

APC

Average Propensity to Consume, which refers to the percentage of income that an individual or group spends on consumer goods and services as opposed to saving.

Japan

A country located in East Asia, known for its rich culture, technological advancements, and as the world's third-largest economy by nominal GDP.

Negative APS

Refers to a situation where average propensity to save is below zero, indicating that consumption exceeds income, leading to dissavings.