In a December 2007 New York Times Column, Paul Krugman

question 93

Multiple Choice

In a December 2007 New York Times column, Paul Krugman noted that

• A) it is difficult to find instances of trade between high-wage countries in the modern era.
• B) it is difficult to find instances of trade between high-wage countries and low-wage countries in the modern erb.
• C) the United States now imports more oil and other raw materials from other advanced countries than from the third world.
• D) the United States now imports more manufactured goods from the third world than from other advanced countries.

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Definitions:

Standard Cost

A predetermined cost of manufacturing a product or providing a service, used for budgetary and inventory purposes.

Price Variance

The difference between the standard cost of a product or service and its actual cost, used in budgeting and financial analysis.

Quantity Variance

A measure used in budgeting and accounting to compare the actual quantity of materials or products used to the expected amount under standard costing.

Cost Variance

The difference between the expected cost of a project or production and the actual cost.