Table 9-12 Production and

question 312

Multiple Choice

Table 9-12
Production and
Consumption Production
Without Trade With Trade
Estonia and Morocco can produce both swords and belts. Table 9-12 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 9-12. If the actual terms of trade are 1 belt for 1.5 swords and 70 belts are traded, how many swords will Estonia gain compared to the "without trade" numbers?

• A) 5
• B) 45
• C) 100
• D) 105

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Definitions:

Manufacturing Costs

Expenses directly incurred in the production of goods, including raw materials, labor, and overhead costs.

Insurance Expense

Insurance expense is the cost incurred by a business for various types of insurance coverages to protect against risks and potential liabilities.

Property Tax

Taxes paid by property owners, based on the value of their property, to fund municipal services such as schooling, road maintenance, and public safety.

Accounts Receivable

Accounts receivable represent the money owed to a company by its customers for goods or services delivered but not yet paid for.