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. With trade, what is the total gain in clock production?
A) 150 clocks
B) 300 clocks
C) 2,100 clocks
D) 2,250 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. With trade, what is the total gain in clock production?
A) 150 clocks 
B) 300 clocks 
C) 2,100 clocks 
D) 2,250 clocks

Quizplus · Accepted Answer

With trade, the total gain in clock production is 150 clocks. This is because the total production of clocks increases from 2,100 to 2,250, and the total consumption of clocks increases from 2,000 to 2,150.

Denmark and Belize Can Produce Both Clocks and Hats