Which of the Following Restricts the Exploitation of Comparative Advantage

question 17

Multiple Choice

Which of the following restricts the exploitation of comparative advantage across countries?

• A) Language and cultural differences.
• B) Similar social norms.
• C) Homogenous quality of inputs.
• D) Homogenous tastes and preferences of the consumers.

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Definitions:

Direct Cost

Expenses that can be directly attributed to the production of specific goods or services, such as materials and labor.

Baker's Wages

Baker's wages refer to the compensation paid to bakery workers or bakers for their labor and expertise in producing baked goods.

Prime Costs

The direct costs of manufacturing a product, which include direct materials and direct labor.

Conversion Costs

The costs incurred when converting raw materials into finished products, typically including direct labor and manufacturing overhead.