-The Data in the Above Table Demonstrates That Gains from Trade

question 324

Multiple Choice

-The data in the above table demonstrates that gains from trade can be captured if

• A) each country became self- sufficient, produced both goods for itself, and did not engage in trade.
• B) the United States produced concrete in exchange for steel produced in France.
• C) the United States produced steel in exchange for concrete produced in France.
• D) the United States produced both goods.

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Definitions:

Factory Overhead

All indirect costs associated with manufacturing, excluding direct labor and direct materials.

Utilities Incurred

Costs accumulated from the consumption of utility services such as electricity, water, and gas.

Selling and Administrative Expense

Combined costs related to the selling of goods and the general administrative activities of a company, excluding production costs.

Direct Materials

Raw materials that are consumed in the production process and can be directly attributed to specific products.