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

question 116

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 belts will Morocco gain compared to the "without trade" numbers?

• A) 0
• B) 10
• C) 50
• D) 60

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Definitions:

Internal Rate Of Return

A financial metric used to evaluate the profitability of an investment, representing the discount rate that makes the net present value of all cash flows from the investment zero.

Present Value

The value now of a future monetary sum or cash flows, considering a specified rate of return.

Desired Rate

A target interest rate that an individual or entity seeks to achieve on an investment.

Income Tax

Taxes imposed by governments on the income generated by businesses and individuals within their jurisdiction.