Technological Changes Have Changed Production Worldwide Toward the Application of

question 30

Multiple Choice

Technological changes have changed production worldwide toward the application of
Computers to manufacturing processes. How does this affect countries that have a
Comparative advantage in the production of high-tech equipment, such as the United States?

• A) U.S. high-tech equipment manufacturers will face increased competition.
• B) U.S. exports will rise because of an increased demand for high-tech equipment.
• C) In the U.S., the cost of producing high-tech equipment will rise because of greater demand.
• D) U.S. imports will rise because the increased demand for high-tech equipment will require an increase in raw materials and other inputs.

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Definitions:

Administrative Expense

Expenses associated with the general management of a business, such as salaries of executives, office supplies, and utilities.

Statement of Owner's Equity

A financial document reflecting changes in the equity of a company's owners over a certain period, including capital contributions, withdrawals, and the net income or loss.

Balance Sheet

A summary of a corporation's assets, liabilities, and equity held by shareholders, documented at a particular moment.

Periodic Inventory System

An accounting method where the inventory level is updated in the accounting records at specific intervals, rather than after each sale or purchase.