Table 19-12
Output per hour Production and Production
of work Consumption without Trade with Trade
$\begin{array}{|c|c|c|c|c|c|c|}
\hline & \text { Swords } & \text { Belts } & \text { Swords } & \text { Belts } & \text { Swords } & \text { Belts } \
\hline \text { Estonia } & 5 & 3 & 100 & 40 & 200 & 0 \
\hline \text { Morocco } & 2 & 2 & 60 & 60 & 0 & 120 \
\hline
\end{array}$ Estonia and Morocco can produce both swords and belts. Each country has a total of 40 available labor hours for the production of swords and belts. Table 19-12 shows the output per hour of work, the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 19-12.All of the following are terms of trade that could possibly benefit both countries except

Question

Table 19-12
Output per hour Production and Production
of work Consumption without Trade with Trade
 $\begin{array}{|c|c|c|c|c|c|c|}
\hline & \text { Swords } & \text { Belts } & \text { Swords } & \text { Belts } & \text { Swords } & \text { Belts } \
\hline \text { Estonia } & 5 & 3 & 100 & 40 & 200 & 0 \
\hline \text { Morocco } & 2 & 2 & 60 & 60 & 0 & 120 \
\hline
\end{array}$ Estonia and Morocco can produce both swords and belts. Each country has a total of 40 available labor hours for the production of swords and belts. Table 19-12 shows the output per hour of work, the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 19-12.All of the following are terms of trade that could possibly benefit both countries except

Quizplus · Accepted Answer

In order for both countries to benefit from trade, they must both be able to consume more of both goods than they would be able to without trade. This means that both countries need to be able to acquire more of the goods they want in exchange for giving up some of the goods they can produce. Option D is not a mutually beneficial term of trade because Estonia would have to give up more swords than it would gain in belts, while Morocco would gain more belts than it would give up in swords. The other options are all mutually beneficial because they allow both countries to gain more of the goods they desire in exchange for giving up some of the goods they can produce.

Table 19-12 Output Per Hour Production and Production of Work

Table 19-12
Output Per Hour Production and Production
of Work