Output per hour Production and Production Estonia Morocco O 120 O 70 O O of work 90 Swords 5 2 50 Belts 3 2 Estonia and Morocco can produce both swords and belts. Each country has a total of 40 available labor hours for the production of swords and belts. Table 7-6 shows the output per hour of work, the production and consumption quantities without trade, and the production numbers with trade. Consumption without Trade Swords 100 60 Refer to Table 7-6. If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded, how many belts will Estonia consume? Belts 40 60 with Trade Swords 200 0 Belts 0 120

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Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate level.