Table 9-6 Output Per Hour Production and Production

question 137

Multiple Choice

Table 9-6
Output per hour Production and Production
of work Consumption without Trade with Trade

Denmark and Belize can produce both clocks and hats.Each country has a total of 200 available labor hours for the production of clocks and hats.Table 9-6 shows the output per hour of work, the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 9-6.Prior to trade, what was the opportunity cost to produce 1 hat in Denmark?

• A)1/6 of a clock
• B)2/3 of a clock
• C)1.5 clocks
• D)6 clocks

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Definitions:

Judicial Sale

A sale conducted under the supervision of a court where property is sold to satisfy a judgment.

Specific Performance

An equitable remedy of the court that may be granted for breach of contract where money damages would be inadequate, and that requires the defendant to carry out the agreement according to its terms.

Possession

The state or fact of owning or having control over something, either physically or legally.

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