If a Country Is More Efficient Than Any Other Country

question 22

True/False

If a country is more efficient than any other country in the production of a product,it has what is known as relative advantage in the production of that product.

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Definitions:

Pounds

A unit of weight commonly used in the British imperial and United States customary measurement systems.

Direct Materials Price Variance

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

Per-unit Standards

Benchmarks or norms for the cost or quantity of materials, labor, and overhead required to produce one unit of product, used for budgeting and performance evaluation.

Gallons

Gallons are a measure of volume used primarily in the United States, equivalent to 3.785 liters.