Question

Table 9-6
Production and
Consumption Production
Without Trade With Trade

ClocksHatsClocksHats
Denmark9001501,2000
Belize1501000400

Denmark and Belize can produce both clocks and hats. Table 9-6 shows the production and consumption quantities without trade, and the production numbers with trade.
Refer to Table 9-6. Which country has a comparative advantage in producing clocks?
A) Denmark
B) Belize
C) both countries
D) neither country

Answer

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