The Gains from Trade

question 31

Multiple Choice

The gains from trade

• A)are likely realized in the long run when workers and firms have had the time to adjust to the new competitive environment.
• B)are immediately realized in the short run, when governments drop protectionist policies.
• C)are smaller than the costs of adjustment.
• D)none of the above

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Definitions:

Equivalent Units

A concept used in process costing that converts partially completed units into a number of equivalent fully completed units.

Ending Work

The inventory or work-in-process at the end of an accounting period that has not yet been completed.

Equivalent Units

A concept used in cost accounting to standardize the quantities of produced goods, accounting for partially completed units.

Physical Units

Refers to the actual count or quantity of items, products, or assets, without regard to their value or cost.