Suppose Country a Has a High Average Wage Level and a High

question 82

Multiple Choice

Suppose Country A has a high average wage level and a high level of output per person,while Country B has a low average wage level and a low level of output per person.Which country can benefit from trade?

• A)Only Country A can benefit.
• B)Only Country B can benefit.
• C)Both Country A and Country B can benefit.
• D)Neither Country A nor Country B can benefit.

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Definitions:

Direct Labour Hours

The total hours worked by employees to manufacture a product, directly involved in the production process and often used to allocate manufacturing overhead.

Standard Costs

Predetermined or estimated costs used to measure the performance of a company by comparing them with actual costs.

Cost Comparisons

The analysis and review of different costs associated with performing various operations or producing different products within a business.

External Reporting

The preparation and disclosure of financial and other performance information by a company to external stakeholders, including regulators, investors, creditors, and the public.