The Ricardo-Viner Model Differs from Stolper-Samuelson in That It

question 56

Multiple Choice

The Ricardo-Viner model differs from Stolper-Samuelson in that it:

• A)offers no predictions about likely political divisions over trade policy.
• B)accounts for the impact of foreign ownership of domestic production.
• C)assumes that factors of production are not readily mobile.
• D)suggests that the major actors in trade policy debates will be firms.

---

Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overhead incurred in transforming materials into finished goods.

Materials Cost

The total expense incurred for materials that are used in the production of goods or in the provision of services.

Weighted Average Method

An inventory costing method that assigns an average cost to each item based on the total cost of goods available for sale and the total quantity available.

Applied Factory Overhead

Indirect costs related to manufacturing, allocated to goods based on a predetermined rate.