Table 7-6 Output Per Hour Production and Production

question 110

Multiple Choice

Table 7-6
Output per hour Production and Production
of work Consumption without Trade with Trade
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 7-6 shows the output per hour of work,the production and consumption quantities without trade,and the production numbers with trade.
-Refer to Table 7-6.If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded,how many swords will Estonia gain compared to the "without trade" numbers?

• A)25
• B)75
• C)100
• D)125

---

Definitions:

Myopic Loss Aversion

The tendency of investors to have a greater sensitivity to losses than to gains, often leading to overly conservative investment choices that avoid risk.

Retirement Need

Retirement need refers to the estimated financial requirement a person will have after retiring from work, considering factors like living expenses, healthcare costs, and planned activities.

Debt-Free

A state in which an individual or entity has no outstanding debt obligations.

Over-Optimism

The tendency of individuals or businesses to have excessively positive expectations about future events or outcomes, often leading to underestimation of risks.