Absolute Advantage Occurs When One Nation Can Produce a Good

question 112

Multiple Choice

Absolute advantage occurs when one nation can produce a good ____ its trading partners.

• A) in larger quantities than
• B) faster than
• C) that is desired by
• D) more efficiently than
• E) only consumed by

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Definitions:

Direct Labor-hours

The all-encompassing total of work hours by staff directly partaking in manufacturing roles.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost based on the actual level of activity output.

Variable Overhead

Costs that vary with the level of production or sales volume, such as raw materials and labor directly involved in production.

Labor Efficiency Variance

The difference between the actual hours worked to produce goods and the standard hours expected, multiplied by the standard labor rate.