Output Per Hour Production and Production
of Work Consumption Without

question 42

Multiple Choice

Output per hour Production and Production
of work Consumption without Trade with Trade
$\begin{array}{|c|c|c|c|c|c|c|c|c|}\hline & \text { Swords } & \text { Belts } & &\text { Swords } & \text { Belts } && \text { Swords } & \text { Belts } \\\hline \text { Estonia } & 5 & 3 && 100 & 40 && 200 & 0 \\\hline \text { Morocco } & 2 & 2 & & 60 & 60 && 0 & 120 \\\hline\end{array}$
Estonia and Morocco can produce both swords and belts.Each country has a total of 40 available labor hours for the production of swords and belts.Table 9-12 shows the output per hour of work,the production and consumption quantities without trade,and the production numbers with trade.
-Refer to Table 9-12.Prior to trade,what was the opportunity cost to produce 1 belt in Estonia?

• A)1/3 of a sword
• B)3/5 of a sword
• C)1.67 swords
• D)5 swords

Understand the impact of changes in demand and supply on equilibrium price and quantity.

Identify the consequences of government interventions such as price ceilings and price floors.

Describe the characteristics and determinants of market equilibrium.

Explain the law of supply and the law of demand.

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Definitions:

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the percentage of tax applied to their highest bracket of income.

Average Tax Rate

The proportion of total income paid in taxes, calculated by dividing the total tax amount by the taxable income.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, representing the increment in tax paid for an increment in income.

City Wage Tax

A local tax imposed on individuals who work in a city, calculated as a percentage of their wages or salaries.