Studies Show That

question 24

Multiple Choice

Studies show that

• A)it is impossible to estimate the benefits of trade barriers.
• B)costs and benefits of trade barriers are about equal.
• C)benefits of trade barriers exceed their costs in developing nations.
• D)costs of trade barriers exceed their benefits, creating an efficiency loss for society.

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.

Product Cost

The total expense involved in creating a product, including direct materials, direct labor, and manufacturing overhead.

Variable Cost

Expenses that vary directly with the amount of output or the scale of operations.

Product Costs

The costs directly associated with the production of goods or services, including raw materials, labor, and manufacturing overhead.