Output Per Hour Production and Production
of Work Consumption Without

question 38

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 hat production?

• A)150
• B)300
• C)400
• D)650

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Definitions:

Depreciation Expense

The portion of the cost of a fixed asset that is charged as an expense in a particular accounting period, reflecting the asset's usage and wear and tear.

Betterments

Improvements made to a property or asset that increase its value or productivity.

Plant Asset

Plant asset is a long-term physical asset used in the production process of a company, such as machinery, buildings, and equipment.

Revenue Expenditures

Expenses that are directly matched with revenues for a specific period, typically affecting the income statement immediately.