Developing Countries Need to Trade with Developed Countries Because _____

question 106

Multiple Choice

Developing countries need to trade with developed countries because _____

• A) developing countries need to adopt the advanced ways of life seen in developed countries.
• B) developing countries need the primary products that developed countries export.
• C) developing countries lack unskilled labor, which they get from developed countries.
• D) developing countries need technology and capital to increase productivity on farms, in factories, in office, and in homes.
• E) developing countries export capital to developed countries and increase their foreign exchange reserve.

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Definitions:

Factory Overhead

Another term for manufacturing overhead, encompassing all indirect costs involved in the production process.

Fixed Costs

Costs that remain constant regardless of the level of production or sales activities, such as lease payments and salaries.

Relevant Range

The range of activity within which the assumptions about fixed and variable cost behaviors remain valid.

Relevant Range

The range of activity or volume over which the assumptions about fixed and variable costs are valid.