Even If the United States Is More Efficient in the Production

question 59

Multiple Choice

Even if the United States is more efficient in the production of everything than China, both countries will benefit from their bilateral trade by specializing in what each
Country can produce relatively more efficiently. This statement is an example of
Which economic theory?

• A) relative cost advantage
• B) supply and demand
• C) concentric advantage
• D) comparative advantage
• E) constructive advantage

---

Definitions:

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost of those materials as budgeted.

Variance Reports

Reports that compare actual financial performance with budgeted or planned performance, highlighting deviations and areas requiring attention.

Significant Variances

Large or important differences between planned and actual figures in a budget or financial statement, often requiring further investigation.

Customer Perspective

An aspect of business strategy that focuses on understanding and meeting the current and future needs of customers.