Output Per Hour Production and Production
of Work Consumption Without

question 276

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.Prior to trade,what was the opportunity cost to produce 1 clock in Denmark?

• A)1/6 of a hat
• B)1/2 of a hat
• C)2 hats
• D)6 hats

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Definitions:

Sales Forecast

An estimate of sales for a future period, often used for planning and managing business operations.

Master Budget

A comprehensive financial planning document that consolidates all individual budgets within an organization, projecting its overall financial activities.

Firm Forecast

A prediction or estimation about future business conditions that is relatively certain and stable.

Finished Goods Units

Products that have completed the manufacturing process and are ready to be sold.