The Principal Reason That Production Possibilities Have Grown More Rapidly

question 96

Multiple Choice

The principal reason that production possibilities have grown more rapidly in Hong Kong than in Canada over the last 50 years is because

• A)of cheap Hong Kong labour.
• B)of foreign aid to Hong Kong.
• C)Hong Kong has fewer workers.
• D)Hong Kong has more natural resources.
• E)Hong Kong has devoted a larger proportion of its resources to capital accumulation.

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Definitions:

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Activity-Based Costing

A costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.

Break-Even Point

The point at which total revenues equal total costs, resulting in no profit but no loss.

Batch Cost

The total cost associated with producing a set or batch of goods.