Which of the Following Choices Correctly Matches a Scholar with the Theory

question 46

Multiple Choice

Which of the following choices correctly matches a scholar with the theory that he or she proposed?

• A) Adam Smith/Comparative Advantage
• B) David Ricardo/New Trade
• C) Raymond Vernon/Product Life Cycle
• D) Eli Heckscher/Absolute Advantage
• E) Michael Porter/Factor Endowment

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Definitions:

Direct Materials

Direct materials are raw materials that are directly traceable to the manufacturing of a product and are an essential part of the finished product.

Direct Labor

The workforce directly involved in producing goods or delivering services, whose wages are considered part of manufacturing costs.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including but not limited to, utilities, depreciation, and salaries of non-direct labor.

Inventoriable Costs

Direct costs associated with the acquisition or production of goods that are capitalized as inventory and recognized as cost of goods sold when the inventory is sold.