To Obtain the Gains Available from Comparative Advantage, Individuals or Countries

question 47

Multiple Choice

To obtain the gains available from comparative advantage, individuals or countries must do more than specialize; they must also

• A) invest.
• B) trade.
• C) engage in research and development.
• D) save.

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Definitions:

Standard Cost

A predetermined cost of manufacturing, selling, or any other business activity, used for budgeting and performance evaluation.

Actual Cost

The actual expense incurred to acquire an asset or service, including all amounts spent to bring the item to a usable condition and location.

Fixed Factory Overhead Volume Variances

The difference between budgeted and actual fixed overhead costs, attributed to variations in production volume.

Normal Capacity

The average production or operating levels that a company can sustain under normal circumstances over a period.