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. What is the opportunity cost to produce 1 hat in Belize?
A) 1/2 of a clock
B) 2/3 of a clock
C) 1.5 clocks
D) 2 clocks

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. What is the opportunity cost to produce 1 hat in Belize?
A) 1/2 of a clock 
B) 2/3 of a clock 
C) 1.5 clocks 
D) 2 clocks

Quizplus · Accepted Answer

The opportunity cost of producing 1 hat in Belize is 1/2 of a clock, meaning Belize gives up producing 1/2 of a clock to produce 1 hat.

Denmark and Belize Can Produce Both Clocks and Hats