When a Firms "Dumps" Some of Its Output in Another

question 12

Multiple Choice

When a firms "dumps" some of its output in another country,it

• A)creates an environmental hazard in the receiving country.
• B)sells its output abroad at a price lower than it costs to produce the output.
• C)increases the total level of employment in the importing country.
• D)is specializing according to comparative advantage.
• E)creates for itself an absolute advantage.

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Definitions:

Process Costing System

An accounting methodology used for homogenous products, allocating costs over the entire production process.

Weighted Average Method

An inventory costing method that assigns a cost to inventory on the basis of the average cost of all similar goods available during a certain period.

Direct Labor

Labor costs directly associated with the manufacturing of products or the provision of services, which vary with the production volume.

Materials Flow

Materials flow describes the movement of raw materials, work-in-progress, and finished goods through various stages of production and supply chain.