The import of Apple iPads assembled in Shanghai at a 295 wholesale price (213 cost and 82 profit margin) adds more than it should to the U.S. trade deficit with China because
a. Chinese assembly labor represents only 47 of the wholesale cost
b. the iPad's popularity has triggered an enormous number of unit sales
c. wholesale prices only count in the trade statistics if final product prices are higher
d. as with foreign-assembled minivans, most of the subassembly components come from the U.S.
e. the Chinese yuan is a managed currency
Question 2
Piece rate pay is
a. Compensation per dollar of profit of the company
b. Compensation per dollar of profit of the division
c. Compensation per piece a worker produces
d. Compensation per dollar of sales
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