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. Which country has an absolute advantage in producing clocks?
A) Denmark
B) Belize
C) both countries
D) neither country

Question

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. Which country has an absolute advantage in producing clocks?
A) Denmark 
B) Belize 
C) both countries 
D) neither country

Quizplus · Accepted Answer

Denmark has an absolute advantage in producing clocks because it can produce more clocks per hour (15) than Belize (10). Absolute advantage refers to the ability of a party to produce a greater quantity of a good, product, or service than competitors, using the same amount of resources.

Denmark and Belize Can Produce Both Clocks and Hats