Suppose That a Worker in Country a Can Make Either

question 137

Multiple Choice

Suppose that a worker in Country A can make either 10 iPhones or 5 iPads each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPhones or 10 iPads each year. Country B has 200 workers. Suppose Country B's population of workers increased to 600. Which of the following statements is now true?

• A) Country B's production possibilities frontier has rotated outward for only the production of iPhones.
• B) Country B's production possibilities frontier has shifted straight outward.
• C) Country B's production possibilities frontier has shifted straight inward.
• D) Country B's production possibilities are now more limited due to overcrowding from the extra workers.

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Definitions:

Controllable Variance

Controllable variance refers to the difference between actual costs and the expected costs that can be controlled or influenced by a manager.

Actual Indirect Factory Wages

This represents the wages paid to workers who are not directly involved in production but support the manufacturing process.

Budgeted Amounts

Financial plans that project income, expenditures, and allocations for a specific period, often used for control and decision-making purposes.

Actual Production

The real, quantifiable amount of goods or services produced by a company within a specific period.