Table 19-11
Production and
Consumption Production
Without Trade With Trade
$$\begin{array} { | l | l | l | l | l | l | }
\hline & \text { Clucks } & \text { Huts } & & \text { Clocks } & \text { Hats } \
\hline \text { Derrnark } & 900 & 150 && 1,200 & 0 \
\hline \text { Belize } & 150 & 100 && 0 & 400 \
\hline
\end{array}$$
Denmark and Belize can produce both clocks and hats.Table 19-11 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 19-11.All of the following are terms of trade that could possibly benefit both countries except

Question

Table 19-11
Production and
Consumption Production
Without Trade With Trade
 $$\begin{array} { | l | l | l | l | l | l | } 
\hline & \text { Clucks } & \text { Huts } & & \text { Clocks } & \text { Hats } \
\hline \text { Derrnark } & 900 & 150 && 1,200 & 0 \
\hline \text { Belize } & 150 & 100 && 0 & 400 \
\hline
\end{array}$$ 
Denmark and Belize can produce both clocks and hats.Table 19-11 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 19-11.All of the following are terms of trade that could possibly benefit both countries except

Quizplus · Accepted Answer

Denmark can produce 1,200 clocks and Belize can produce 400 hats. For both to benefit, the terms of trade should be between their opportunity costs. Denmark's opportunity cost is 1/6 hat per clock, and Belize's is 2/3 hat per clock. Option D (3/4 hat per clock) is outside this range and would not benefit both.

Table 19-11 Production and Consumption Production Without Trade with Trade

Table 19-11
Production and
Consumption Production
Without Trade with Trade