Table 9-12
Production and
Consumption Production
Without Trade With Trade
Estonia and Morocco can produce both swords and belts. Table 9-12 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 9-12. If the actual terms of trade are 1 belt for 1.5 swords and 70 belts are traded, how many belts will Estonia consume?
A) 50
B) 70
C) 90
D) 120

Question

Table 9-12
Production and
Consumption Production
Without Trade With Trade
  Estonia and Morocco can produce both swords and belts. Table 9-12 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 9-12. If the actual terms of trade are 1 belt for 1.5 swords and 70 belts are traded, how many belts will Estonia consume?
A) 50 
B) 70 
C) 90 
D) 120

Quizplus · Accepted Answer

Estonia will consume 70 belts because the actual terms of trade are 1 belt for 1.5 swords and 70 belts are traded.

Table 9-12 Production and