The Shipbreakers of Alang Utilize Much Labor and Little Capital

question 23

Multiple Choice

The Shipbreakers of Alang utilize much labor and little capital, thereby supporting the applicability of the

• A) factor proportions explanation of the sources of comparative advantage.
• B) specific factor theory of comparative advantage.
• C) monopolistic competition theory of comparative advantage.
• D) scale economies theory of comparative advantage.
• E) basis of the non-dumping legislation.

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Definitions:

Accounts Receivable

The amount of money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Sales

The transactions involving the exchange of goods or services for money, representing a key revenue source for most businesses.

Indirect Costs

Expenses related to operations that are not directly tied to a specific product or service, such as overhead or administrative expenses.

Cost Of Goods Manufactured

The total production cost of goods that are completed during a specific accounting period, including materials, labor, and overhead.