People Will Choose to Specialize and Trade If They Can

question 83

Multiple Choice

People will choose to specialize and trade if they can acquire the goods they want:

• A) at a lower cost than it would cost them to make the goods themselves.
• B) at a higher cost than it would cost them to make the goods themselves.
• C) from someone who is willing to trade with them.
• D) from a capitalistic system of exchange.

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Definitions:

Manufacturing Overhead

The indirect costs associated with manufacturing that are not directly tied to the production of specific goods, such as maintenance, utilities, and salaries of supervisors.

Sheet Steel

Thin, flat steel that is made in sheets, used in a wide range of industries including construction and manufacturing.

Cost Of Goods Manufactured

The manufacturing costs associated with the goods that were finished during the period.

Indirect Materials

Materials that are used in the production process but do not become an identifiable part of the final product.