Table 13.6
Production and
Consumption Production
Without Trade With Trade Denmark and Belize can produce both clocks and hats.Table 13.6 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 13.6.The country which has a comparative advantage in producing clocks is
A)Denmark
B)Belize
C)both countries
D)neither country

Question

Table 13.6
Production and
Consumption Production
Without Trade With Trade  Denmark and Belize can produce both clocks and hats.Table 13.6 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 13.6.The country which has a comparative advantage in producing clocks is
A)Denmark 
B)Belize 
C)both countries 
D)neither country

Quizplus · Accepted Answer

Denmark has a lower opportunity cost of producing clocks (1 hat per clock) compared to Belize (2 hats per clock). Therefore, Denmark has a comparative advantage in producing clocks.

Table 13.6 Production and