Suppose a Car Is Completely Produced and Assembled in Germany

question 83

Multiple Choice

Suppose a car is completely produced and assembled in Germany and is sold to the United States.In this example,if the United States restricts the purchase of the car from Germany,then the country whose overall welfare would be reduced by this policy would be

• A) the United States.
• B) Germany.
• C) neither Germany nor the United States.
• D) both Germany and the United States.

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Definitions:

Raw Materials

The basic substances or components that are processed or combined to manufacture finished goods.

Journalize

The process of recording financial transactions in a company’s accounting records, or journal, in chronological order.

Units

A measurement of quantity, such as items, hours, or other measures, used in the organization or operation of businesses.

Direct Labor

The wages and benefits paid to employees who are directly involved in the production process of a company's products or services.