-Suppose the Production Possibilities for Two Countries,producing Either Food or Clothing,are

question 92

Multiple Choice

-Suppose the production possibilities for two countries,producing either food or clothing,are shown in the above figure.The U.S.has a comparative advantage in producing

• A)food.
• B)clothing.
• C)food and clothing.
• D)neither good.

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Definitions:

Quantity Standard

The predetermined amount of materials, labor, and overhead that should be used for each unit of production.

Unit Of Product

A single item or instance of a product manufactured or sold by a company.

Input

Resources used in the process of production, including raw materials, labor, and overhead costs.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity allowed for the actual output, multiplied by the standard price per unit of materials.