The Theory That Explains the Shift of Color TV Sets

question 3

Multiple Choice

The theory that explains the shift of color TV sets production from the United States to Japan and Taiwan is called the _____ theory.

• A)productivity difference
• B)factor abundance
• C)product life cycle
• D)preference
• E)human skills

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Definitions:

Food Industry

The sector that covers the processing, preparation, and distribution of food products from agricultural production to consumers.

Total Revenue

The total income generated by a company from its business activities before any expenses are subtracted.

Recession

A period of significant economic decline spread across the economy lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces.