Which of the Following Is a Statement That Supports the Theory

question 17

Multiple Choice

Which of the following is a statement that supports the theory of comparative advantage?

• A) International trade is a zero-sum gain where one nation's gain is another's loss.
• B) Domestic industries are at risk when a country engages in free trade.
• C) A country should maintain a trade surplus to succeed in global trade.
• D) Global production is greater with free trade than it is with restricted trade.

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Definitions:

Direct Labor Costs

Direct labor costs are the total expenses that a company incurs for labor directly involved in the manufacturing process of its products, including wages and salaries of the production staff.

Factory Overhead Rate

A calculation used to allocate indirect manufacturing costs to products, typically based on a base measure like labor hours or machine hours.

Direct Labor Cost

The total cost of employment for workers directly involved in the manufacturing of products or delivery of services.

Time Tickets

documents used to record the amount of time an employee spends on various tasks, useful for job costing and payroll.