Table 9-6 Output Per Hour Production and Production

question 168

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.If the actual terms of trade are 1 hat for 1.8 clocks and 150 hats are traded, how many clocks will Belize consume?

• A)150
• B)270
• C)930
• D)1,200

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Definitions:

Perfectly Competitive

A perfectly competitive market is one where there are many buyers and sellers, all selling identical products, with no single buyer or seller able to influence the market price.

Sellers

Participants in a market who offer goods or services for sale.

Zero Profit

A condition in which a firm's total revenues are exactly equal to its total costs, making no economic profit.

Electricity Prices

The amount charged by energy suppliers for the consumption of electrical power.