Which of the Following Has Contributed Most to the Significant

question 47

Multiple Choice

Which of the following has contributed most to the significant increase in world trade since
1960?

• A)increase in world population
• B)advances in communication and transportation that have lowered transportation costs
• C)increases in military spending in every nation
• D)consumers' changing tastes and preferences

---

Definitions:

Overhead Costs

Indirect costs of products or services.

Capacity-Sustaining Cost

Costs incurred to maintain the production capacity of a company at current levels, including costs for maintenance and repair of equipment.

Batch-Level Cost

Costs that are incurred as a result of producing a batch of products, rather than the production process as a whole.

Unit-Level Cost

A cost that is directly incurred for each unit of production or service provided.