Which Specific Factor Loses from Trade

question 21

Multiple Choice

Which specific factor loses from trade?

• A) one that is specific to the importing industry
• B) one that is specific to the exporting industry
• C) one that is mobile between sectors
• D) None of these loses from trade.

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Definitions:

Plantwide Predetermined

A single overhead rate calculated for an entire plant or facility, used to allocate overhead costs to all products equally.

Direct Labor-Hour

A measure of the amount of time spent by workers directly involved in the manufacturing process to produce a single unit.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate estimated overhead costs to products or job orders based on a chosen activity base.

Machine-Hours

A measurement of the amount of time machinery is operated, used in calculating production costs and efficiency.