If a Nation Restricts Trade with Other Nations, Then the Most

question 114

Multiple Choice

If a nation restricts trade with other nations, then the most likely effect is

• A) lower prices of goods and services in the nation.
• B) increased specialization of production.
• C) expanded economic wealth of the nation.
• D) consumers in the nation are made worse off.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or standard) cost of materials.

Variable Manufacturing Overhead

Costs that vary in total in direct proportion to changes in the volume of production, such as indirect materials and utility costs directly tied to production.

Raw Materials

The basic materials from which a product is made, prior to any processing or manufacturing.

Price Variance

The difference between the actual price paid for something and its standard or expected price.