Table 9-11
Output per hour Production and Production
of work Consumption without Trade with Trade
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. Which country has an absolute advantage in producing hats?
A) Denmark
B) Belize
C) both countries
D) neither country

Question

Table 9-11
Output per hour Production and Production
of work Consumption without Trade with Trade
  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. Which country has an absolute advantage in producing hats?
A) Denmark 
B) Belize 
C) both countries 
D) neither country

Quizplus · Accepted Answer

Denmark has an absolute advantage in producing hats if it can produce more hats than Belize with the same resources or produce the same number of hats with fewer resources.

Table 9-11 Output Per Hour Production and Production