The Principal Reason That Production Possibilities Have Grown More Rapidly

question 96

Multiple Choice

The principal reason that production possibilities have grown more rapidly in Hong Kong than in Canada over the last 50 years is because

• A)of cheap Hong Kong labour.
• B)of foreign aid to Hong Kong.
• C)Hong Kong has fewer workers.
• D)Hong Kong has more natural resources.
• E)Hong Kong has devoted a larger proportion of its resources to capital accumulation.

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Definitions:

Manufacturing Overhead

Costs associated with the production process that are not directly traceable to a specific product, such as utilities and factory maintenance.

Cost of Goods Sold

The costs incurred directly from manufacturing the goods a company sells.

Overapplied

A situation where the allocated overhead costs in accounting exceed the actual overhead costs incurred.

Underapplied

In cost accounting, it describes a situation where the allocated overhead costs are less than the actual overhead costs incurred.