Consider the Following Information About the Production of Two Goods,X

question 77

Multiple Choice

Consider the following information about the production of two goods,X and Y,in two countries,A and B: • In Country A it takes X_a units of resources to produce one unit of X and Y_a units of resources
To produce one unit of Y.
• In Country B it takes X_b units of resources to produce one unit of X and Y_b units of resources
To produce one unit of Y.
• Assume the amount of resources used to produce the goods in the two countries can be
Compared unambiguously.
TABLE 32-1
Refer to Table 32-1.There is no scope for gains from trade due to specialization between the two countries if

• A)(X_a/Y_a)is greater than (X_b/Y_b).
• B)X_a is equal to Y_b.
• C)(X_a/Y_a)is equal to (X_b/Y_b).
• D)X_a is less than Y_b and Y_a is less than Y_b.
• E)X_a is less than X_b.

Understand the concepts of equivalent units for materials and conversion costs in process costing.

Compute the cost of units transferred out of a department under the weighted-average method.

Recognize the differences in total cost allocation between the step-down and direct methods.

Recognize and apply the calculation of equivalent units of production under FIFO method.

---

Definitions:

Officially Unemployed

Officially unemployed refers to individuals who are without a job, actively seeking work, and currently available to take up employment.

Fully Employed Economy

A situation where all available labor resources are being used in the most economically efficient way, with minimal unemployment.

Cyclical Unemployment

Unemployment that results from business cycle fluctuations and the imbalances in supply and demand that arise in the economy over time.

Discouraged Workers

Individuals who are not actively looking for work because they believe no jobs are available for them or there are no jobs for which they would qualify.