The impact of increasing, as opposed to constant, costs is to:
A. intensify and prolong the comparative advantages that any nation may have initially.
B. expand the limits of the terms of trade.
C. cause the bases for further specialization to disappear as nations specialize according to
comparative advantage.
D. cause nations to realize economies of scale in those products in which they specialize.
C. cause the bases for further specialization to disappear as nations specialize according to
comparative advantage
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Assume the government is concerned about the high price of Atlantic Red Crab and announces that it is going to shorten the fishing season to one week
What impact will this have on the quantity of crab caught and the price of crab? Will this actually result in greater protection of the Atlantic Red Crab?
The use of checks in transactions
A) entails lower information costs than the use of currency. B) entails fewer steps than settling transactions with currency. C) avoids the cost of transporting currency back and forth. D) entails lower information and fewer steps than settling transactions with currency.
Which of the following is NOT a role of Federal Reserve Banks?
A) conduct discount lending B) serve on the FOMC C) set the interest rate on reserves D) manage check clearing in the banking system
Mention the factors which have helped South Africa's electricity supplier, Eskom, to reduce transaction costs and distribute electricity cheaply?