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 hats 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 hats is
A)Denmark 
B)Belize 
C)both countries 
D)neither country

Quizplus · Accepted Answer

Belize has a lower opportunity cost of producing hats compared to clocks, indicating a comparative advantage in hat production. In contrast, Denmark has a lower opportunity cost of producing clocks, indicating a comparative advantage in clock production. Therefore, Belize should specialize in hat production while Denmark should focus on clock production.

Table 13.6 Production and