The Simultaneous Export and Import of Widgets by the United

question 55

Multiple Choice

The simultaneous export and import of widgets by the United States is an example of

• A) inter-industry trade.
• B) imperfect competition.
• C) the effect of a monopoly on international trade.
• D) intra-industry trade.
• E) increasing returns to scale.

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Definitions:

First-In, First-Out

An inventory valuation method assuming that goods are sold or used in the same order as they were purchased or produced.

Direct Labor

The work of employees that is directly associated with the production of goods or services.

Factory Overhead

Encompasses all indirect costs involved in the manufacturing process, such as utilities, maintenance, and salaries of non-direct labor.

FIFO Method

"First In, First Out," an inventory valuation method that assumes that the first items placed in inventory are the first sold, affecting the cost of goods sold and inventory valuation.