Table 196
Production and
Consumption Production
Without Trade with Trade

question 64

Multiple Choice

Table 19.6
Production and
Consumption Production
Without Trade with Trade
$$\begin{array} { | l | l | l | l| l | } \hline & \text { Clerks } & \text { Hats } & \text { Clerks } & \text { Hats } \\\hline \text { Denmark } & 900 & 150 & 1200 & 0 \\\hline \text { Belize } & 150 & 100 & 0 & 400 \\\hline\end{array}$$ Denmark and Belize can produce both clocks and hats. Table 19.6 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 19.6.Prior to trade,what was the opportunity cost to produce one clock in Denmark?

• A) 1/6 of a hat
• B) 2/3 of a hat
• C) 1.5 hats
• D) 6 hats

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Definitions:

Framing

The process of shaping the perception or presentation of information in a way that influences judgment and decision-making.

Algorithms

Step-by-step procedures or formulas for solving problems or completing tasks, often used in computer programming and mathematics.

Representativeness Heuristic

A cognitive shortcut where the likelihood of an object belonging to a category is judged based on how representative it is of that category.

Belief Perseverance

Belief perseverance is the psychological phenomenon where individuals maintain a belief despite new information or evidence that contradicts or disproves it.