When a Nation Starts Importing a Good or Service,domestic Employment

question 184

Multiple Choice

When a nation starts importing a good or service,domestic employment in that industry

• A) decreases.
• B) stays the same.
• C) increases.
• D) might change, but more information about what else the country imports is needed to determine if employment increases, decreases, or does not change.
• E) might change, but more information about what the country exports is needed to determine if employment increases, decreases, or does not change.

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Definitions:

Variable Selling

Costs associated with selling a product that vary directly with the volume of sales, such as commission fees.

Absorption Costing

A pricing strategy that incorporates all costs associated with production, including both variable and fixed expenses, into the product's cost.

Absorption Costing

The accounting methodology that integrates all costs related to manufacturing, including direct materials, direct labor, and both forms of manufacturing overhead—variable and fixed—into a product's total cost.

Variable Costing

A financial tracking method that considers just the variable operating costs (direct materials, direct labor, and variable manufacturing overhead) in the pricing of merchandise.