If the Average Productivity of Indian Firms Is Rising More

question 22

Multiple Choice

If the average productivity of Indian firms is rising more quickly than the average productivity of American firms,which of the following would you expect to see? (India's currency is the rupee.)

• A)a decrease in the value of the rupee relative to the dollar
• B)an increase in the prices of Indian products
• C)an increase in the quantity demanded of Indian products relative to American products
• D)All of the above are correct.

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Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and manager salaries.

Product Margins

The difference between the selling price of a product and the cost to produce it, reflecting the profitability of each product sold.

Machine-Hours

A measure used in accounting to allocate manufacturing overhead costs, representing the total hours that machines are operated in the production of goods.

Number of Batches

The total count of groups or sets of items processed or produced together in a manufacturing or production process.