Table 3-4 -Refer to the Table.If Alberta and Manitoba Trade Based on Manitoba

question 124

Multiple Choice

Table 3-4

-Refer to the table.If Alberta and Manitoba trade based on the principle of comparative advantage,what will be exported

• A)Alberta will export baskets, and Manitoba will export birdhouses.
• B)Alberta will export birdhouses, and Manitoba will export baskets.
• C)Alberta will export neither good, and Manitoba will export both goods.
• D)Alberta will export both goods, and Manitoba will export neither good.

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Definitions:

Goods Manufactured

The total value of all products that have been completed during a specified period.

Overhead Rate

A calculation used to allocate indirect costs to produced goods, based on a specific base, such as labor hours.

Direct Labor Cost

The total cost of employment for employees who directly contribute to the production of goods or services, including wages and benefits.

Machine-Hours

A measure of the total time that machines are operating in a manufacturing process.