In a Two-Product,two-Country World,international Trade Can Lead to Increases In

question 86

Multiple Choice

In a two-product,two-country world,international trade can lead to increases in:

• A) Consumer welfare only if output of both products is increased
• B) Output of both products and consumer welfare in both countries
• C) Total production of both products,but not consumer welfare in both countries
• D) Consumer welfare in both countries,but not total production of both products

---

Definitions:

Average Cost Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all items available for sale during the period.

Conversion Costs

Costs associated with converting raw materials into finished products, typically including labor and manufacturing overhead.

Conversion Costs

Costs in manufacturing that are directly related to converting raw materials into finished goods, primarily consisting of labor and overhead expenses.

Direct Material Costs

The cost of raw materials directly used in the production of goods.