Table 18-6
Production and
Consumption Production
Without Trade With Trade
Denmark and Belize can produce both clocks and hats. Table 18-6 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 18-6.Which country has a comparative advantage in producing clocks?

Question

Table 18-6
Production and
Consumption Production
Without Trade With Trade
  Denmark and Belize can produce both clocks and hats. Table 18-6 shows the production and consumption quantities without trade, and the production numbers with trade.
-Refer to Table 18-6.Which country has a comparative advantage in producing clocks?

Quizplus · Accepted Answer

Denmark has a lower opportunity cost of producing clocks compared to Belize (1 hat for 2 clocks versus 1 hat for 3 clocks). This means Denmark has a comparative advantage in producing clocks.

Table 18-6 Production and