If with One Unit of Labor the U

question 62

Multiple Choice

If with one unit of labor the U.S. can produce 20 units of computer software and 10 units of computer hardware and China can produce 4 units of software and 4 units of hardware then

• A)the United States has a comparative and absolute advantage in both goods.
• B)China has a comparative and absolute advantage in both goods.
• C)the United States has an absolute advantage in both goods.
• D)the United States has a comparative advantage in both goods.

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Definitions:

Standard Costs

Predetermined costs to manufacture a product or deliver a service, used for budgeting and performance evaluation.

Direct Materials Price Variance

The difference between the actual cost of direct materials used in production and the expected (or standard) cost.

Actual Costs

The genuine expenses that are incurred in the production or acquisition of goods and services.

Standard Costs

Predetermined cost estimates relating to how much it should cost to produce a product or provide a service under normal conditions.