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. What is the opportunity cost to produce 1 clock in Denmark?
A) 1/6 of a hat
B) 1/2 of a hat
C) 2 hats
D) 6 hats

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. What is the opportunity cost to produce 1 clock in Denmark?
A) 1/6 of a hat 
B) 1/2 of a hat 
C) 2 hats 
D) 6 hats

Quizplus · Accepted Answer

The opportunity cost of producing 1 clock in Denmark is 1/2 of a hat, meaning Denmark gives up producing 0.5 hats to produce 1 clock.

Table 9-11 Output Per Hour Production and Production