International trade based solely on internal scale economies in both countries is likely to be carried out by
A) monopolists in each country.
B) a relatively large number of price competing firms.
C) a relatively small number of price competing firms.
D) a relatively small number of imperfect competitors.
E) a large number of oligopolists in each country.
A
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Dependency theory characterizes countries as being either in the center or on the periphery. Explain these two concepts. If this theory is correct, what are the implications for development strategy?
What will be an ideal response?
An excess supply will cause price to fall
Indicate whether the statement is true or false
If the United States exports wheat to foreign countries that levy tariffs on wheat imports, the probable result is that the price of wheat will
a. fall in foreign countries. b. rise in the United States. c. rise in foreign countries. d. rise faster in the United States than in foreign countries.
It is not uncommon for people to say something like, "If we can put someone on the moon we should be able to . . . ," followed by the person's favorite project. What response can an economist make to this person?
What will be an ideal response?