Table 7-6 Production and

question 112

Multiple Choice

Table 7-6
Production and
Consumption Production
Without Trade With Trade
Estonia and Morocco can produce both swords and belts.Table 7-6 shows the production and consumption quantities without trade,and the production numbers with trade.
-Refer to Table 7-6.With trade,what is the total gain in sword production?

• A)50
• B)100
• C)200
• D)350

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Definitions:

Gasoline

A flammable liquid derived from petroleum, used primarily as fuel in internal combustion engines.

Price Elasticity

An assessment of demand's elasticity regarding the pricing changes of a specific product.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices, holding all else constant.

Cost Function

An equation that calculates the total cost incurred by a company to produce a specific quantity of a good or service.