Countries Do Not Have Access to the Same Technology When

question 31

Multiple Choice

Countries do not have access to the same technology when

• A) government introduces laws to make it easy for labour unions to organize.
• B) population growth rates increase.
• C) governments enter into free trade agreements.
• D) total factor productivity does not converge.
• E) labour supply declines.

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Definitions:

Excess Capacity

The situation where a company can produce more goods or services than currently demanded, indicating underutilization of resources.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing one option over another.

Outlay Cost

Expenses directly associated with the production of goods or services, such as materials and labor.

Variable Selling Costs

Expenses that change in proportion to the volume of sales, such as commissions and shipping costs.