According to Some Economists, for What Length of Time Should

question 94

Multiple Choice

According to some economists, for what length of time should protection be granted to infant industries?  

• A) for as long as it takes new firms to get a brand identity 
• B) for as long as it takes for new firms to eventually develop significant economies of scale in their production processes 
• C) for 1 year regardless of production economies 
• D) permanently

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Definitions:

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, based on the standard rate and actual hours worked.

Direct Labor Time Variance

A measure used in cost accounting to analyze the difference between actual hours worked and the standard hours expected for a task.

Standard Costs

Predetermined costs assigned to goods and services, used as targets for performance evaluation.

Actual Costs

The real costs incurred in the production of goods or provision of services, as opposed to estimated or standard costs.