Suppose That, Other Things Equal, Labor Moves from Country a to Country

question 21

Multiple Choice

Suppose that, other things equal, labor moves from country A to country B. In a two-Factor world (capital and labor) , this labor movement will lead to

• A) an increase in the total return to owners of capital in country A.
• B) a decrease in the total return to owners of capital in country A.
• C) a decrease in the wage rate in country B.
• D) a decrease in total wages paid in country B.

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Definitions:

Materials Quantity Variance

The variance between the real amount of materials consumed in the production process and what was anticipated, calculated by the standard cost for each unit.

Materials Price Variance

Difference between the actual cost of material and the standard cost multiplied by the amount of material purchased.

Cash Account

An account reflecting the amount of cash a company or individual has available.

Work in Process Inventory

Items that are partially completed during manufacturing, which are not yet ready for sale.