There Is a Bias in the Political Process Against Free

question 35

Multiple Choice

There is a bias in the political process against free trade because

• A) those who lose from free trade are better organized than those who gain.
• B) the gains from free trade cannot be measured.
• C) those who gain from free trade can't compensate those who lose.
• D) foreign governments make large donations to U.S. political campaigns.
• E) there is a high correlation between the volume of imports and the unemployment rate.

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Definitions:

Budgeted Amount

The estimated financial expenditure or revenue for a specific period, often used as a plan or guideline for managing finances.

Overhead Volume Variance

The difference between the budgeted overhead costs and the actual costs incurred, due to changes in the level of production or activity.

Fixed Overhead

Fixed Overhead refers to the indirect costs of production that do not vary with the volume of production, such as salaries of managers, rent of factory, and depreciation of equipment.

Standard Cost System

A system of accounting that uses predetermined costs for calculating variances and tracking operational performance.