If, When a Country Grows, Its Home Production of Its

question 21

Multiple Choice

If, when a country grows, its home production of its export good increases by 10 percent and its home consumption of its export good also increases by 10 percent, then, with the economic growth and with other things equal, the country's absolute quantity of exports will __________.

• A) increase
• B) decrease
• C) remain constant
• D) increase, decrease, or remain constant - cannot be determined without more
• Information.

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Definitions:

Weighted-Average Method

A cost accounting method that averages the costs of goods available for sale or production, weighting by the quantities at each cost.

Materials Cost

The total expense incurred by a company for raw materials and supplies needed to manufacture products.

Weighted-Average Method

A method for valuing inventory that figures out the cost of goods sold and the end inventory value by averaging the cost of all items available for sale over the period.

Labor and Overhead

The combination of direct labor costs and overhead costs incurred in the production process.