Table 196
Production and
Consumption Production
Without Trade with Trade

question 2

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.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:

Due Care

The level of judgment, caution, and attentiveness expected of a reasonable person.

Negligence

Failure to take reasonable care to avoid causing injury or loss to another person, resulting in legal liability for the resulting harm.

Directors

Individuals elected by shareholders to oversee the management of a corporation and make major decisions.

Board Meetings

Formal gatherings of the board of directors of an organization or company to discuss and decide on corporate matters.