The ability to lower the average costs of production for two or more products is possible with
a. Economies of scale
b. Economies of Scope
c. Diseconomies of Scale
d. Diseconomies of Scope
b
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The case of Airbus, an airplane manufacturing consortium in Europe, which receives large subsidies from several European countries, best exemplifies which rationale for protectionist policies?
A) helping domestic firms establish monopolies in world markets B) shielding workers from foreign competition C) protecting infant industries D) prevention of dumping in local markets
Which of the following is likely to cause a decrease in both the wage rate and the level of employment in an industry?
A) A right shift in the supply curve for labor, without any change in the demand curve for labor B) A left shift in the supply curve for labor, without any change in the demand curve for labor C) A right shift in the demand curve for labor, without any change in the supply curve for labor D) A left shift in the demand curve for labor, without any change in the supply curve for labor
When and under what circumstances is intervention in international trade justified on market correction grounds? What preconditions would have to be met from the government side for there to be a reasonable likelihood of success?
What will be an ideal response?
Explain why it is not possible for a country to have comparative advantage in the production of all goods