Table 19-12
Output Per Hour Production and Production
of Work

question 372

Multiple Choice

Table 19-12
Output per hour Production and Production
of work Consumption without Trade with Trade
$\begin{array}{|c|c|c|c|c|c|c|}\hline & \text { Swords } & \text { Belts } & \text { Swords } & \text { Belts } & \text { Swords } & \text { Belts } \\\hline \text { Estonia } & 5 & 3 & 100 & 40 & 200 & 0 \\\hline \text { Morocco } & 2 & 2 & 60 & 60 & 0 & 120 \\\hline\end{array}$ Estonia and Morocco can produce both swords and belts. Each country has a total of 40 available labor hours for the production of swords and belts. Table 19-12 shows the output per hour of work, 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 50 belts are traded,how many swords will Morocco consume?

• A) 60
• B) 75
• C) 135
• D) 200

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Definitions:

Pay Increase

An upward adjustment in an individual's salary or wages, often recognized as a reward for performance or due to changes in market conditions.

Labor Negotiations

The process of collective bargaining between employers and employees (or their representatives) over wages, working conditions, benefits, and other aspects of workers' compensation and rights.

Mandatory Items

Including wages, working hours, and benefits, must be included as part of collective bargaining if either party expresses a desire to negotiate one or more of them.

Negotiating Party

A group or individual that enters into discussion with others to reach an agreement or resolve differences.