Which of the Following Is True

question 179

Multiple Choice

Which of the following is true?
i.When the world price of a good is lower than the price that balances domestic supply and demand,a country gains from exporting the good.
ii.Compared to a no-trade situation,in a market with imports,consumer surplus is larger.
iii.Quotas raise the domestic price of imported goods.

• A) only i
• B) only ii
• C) only iii
• D) i and ii
• E) ii and iii

---

Definitions:

Unadjusted Cost of Goods Sold

The initial calculation of the cost of goods sold that does not factor in any adjustments like returns or allowances.

Unadjusted Cost of Goods Sold

The initial calculation of the cost of products sold before any adjustments or corrections are made.

Total Manufacturing Cost

The aggregate of all costs—direct materials, direct labor, and manufacturing overhead—incurred in producing finished goods.

Raw Materials

are the basic, unprocessed inputs used in the manufacture of goods and products.