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.Prior to trade, what was the opportunity cost to produce 1 clock in Denmark?
A)1/6 of a hat
B)2/3 of a hat
C)1)5 hats
D)6 hats

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.Prior to trade, what was the opportunity cost to produce 1 clock in Denmark?
A)1/6 of a hat 
B)2/3 of a hat 
C)1)5 hats 
D)6 hats

Quizplus · Accepted Answer

Prior to trade, Denmark could produce 6 hats or 1 clock. So, the opportunity cost of producing 1 clock was 6 hats.

Table 13.6 Production and