Output Per Hour Production and Production
of Work Consumption Without

question 209

Multiple Choice

Output per hour Production and Production
of work Consumption without Trade with Trade
$\begin{array}{|c|c|c|c|c|c|c|c|c|}\hline & \text { Clocks } & \text { Hats } & & \text { Clocks } & \text { Hats } && \text { Clocks } & \text { Hats } \\\hline \text { Denmark } & 6 & 3 & & 900 & 150 & &1,200 & 0 \\\hline \text { Belize } & 1 & 2 & & 150 & 100& & 0 & 400 \\\hline\end{array}$
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 9-11 shows the output per hour of work,the production and consumption quantities without trade,and the production numbers with trade.
-Refer to Table 9-11.With trade,what is the total gain in clock production?

• A)150
• B)300
• C)2,100
• D)2,250

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Definitions:

Specialization

The use of the resources of an individual, a firm, a region, or a nation to concentrate production on one or a small number of goods and services.

Total Output

The total amount of goods or services produced by an economy, industry, company, or individual over a specific period.

Continued Losses

Ongoing financial deficits where expenses exceed revenues over a period of time.

Distribution of Income

The way in which a nation’s total income is spread among its population, affecting economic stability and growth.