If Factors of Production Cannot Flow Between Countries

question 21

Multiple Choice

If factors of production cannot flow between countries

• A)there is no reason to expect that wages should be equal worldwide.
• B)multinational corporations would not exist.
• C)trade in goods could still occur.
• D)All of the above.

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Definitions:

Underapplied Overhead

Occurs when the allocated overhead costs are less than the actual overhead costs incurred, leading to a shortfall in overhead cost allocation.

Direct Labor-Hours

The total hours of work directly spent on the production of goods or the delivery of services.

Overapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead costs for a period are more than the actual overhead costs incurred.

Finished Goods

Products that have completed the manufacturing process and are ready for sale to customers.