A Proportionately Greater Increase in the Nation's Supply of Labor

question 12

Multiple Choice

A proportionately greater increase in the nation's supply of labor than of capital is likely to result in a deterioration in the nation's terms of trade if the nation exports:

• A)the K-intensive commodity
• B)the L-intensive commodity
• C)either commodity
• D)both commodities

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Definitions:

FIFO Retail Inventory Method

An inventory costing method that assumes items are sold in the order they were purchased or produced, first-in, first-out, applied specifically to retail inventories.

Cost-to-retail Percentage

Cost-to-retail percentage is a ratio used in retail to convert the ending inventory at retail prices back to a cost basis for financial reporting.

Net Markups

The amount by which the selling price of an item exceeds its cost, after accounting for discounts, allowances, and returns.