Consider Two Countries Which Trade with Each Other

question 28

Multiple Choice

Consider two countries which trade with each other.The degree of specialization according to their respective comparative advantages will be greater if the countries face:

• A)constant costs.
• B)high tariffs.
• C)low unemployment rates.
• D)increasing costs.

Understand the primary challenges and errors in performance appraisal systems.

Identify strategies to improve the fairness and reduce political behavior in appraisal systems.

Recognize and mitigate various types of rating errors, including distributional, halo, and horns errors.

Comprehend approaches to performance feedback and their effectiveness.

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Definitions:

Incremental Basis

A method of calculating changes in costs or benefits that result from small variations in the quantity of output or input.

Differential Basis

A method of calculating or analyzing the difference in costs or revenues between two alternative actions.

Sunk Cost

A cost that cannot be changed by any present or future decision.

Book Value

The difference between the cost of a depreciable asset and its related accumulated depreciation.