In the Presence of External Economies of Scale,trade

question 11

Multiple Choice

In the presence of external economies of scale,trade

• A) may or may not improve welfare in both countries.
• B) will unambiguously improves welfare in both countries.
• C) will unambiguously worsens welfare in both countries.
• D) will unambiguously worsen welfare in the exporting country and improve welfare in the importing country.
• E) will unambiguously improve welfare in the exporting country and worsen welfare in the importing country.

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Definitions:

Benefits of Budgeting

Benefits of budgeting include providing a financial framework for decision making, setting financial targets, and monitoring financial performance against those targets.

Production Budget

A forecast of the units that must be produced to meet anticipated sales, used in planning the required production levels.

Rolling Budget

A financial plan that is continually updated by adding a new period (month, quarter, etc.) as the current period concludes, ensuring the budget extends a constant length into the future.

Direct Labor Budget

An estimation of the total amount of labor cost that will be required for production over a specific period.