Under some circumstances, trade could stifle the development of new industries and reduce global efficiency. All of the following describe conditions that could lead to that situation EXCEPT
A) an initial head start gives a scale advantage to already existing firms in one country.
B) diseconomies of scale make it impossible for new firms to enter the market.
C) a location has a better-developed linkage between suppliers and producers, giving it a cost advantage.
D) a historical accident, such as the shifting of airplane production to the United States to avoid World War II bombings, causes firms in one location to have a competitive advantage.
B
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Describe Keynesian Economics as it pertains to GDP
What would be an ideal response?
On paper, the Bank of Canada has ________ instrument independence and ________ goal independence when compared to the Federal Reserve System
A) less; less B) less; more C) more; less D) more; more
Due to the implementation of the Troubled Asset Relief Program and the American Recovery and Reinvestment Act, the Federal budget deficit _____
a. doubled b. tripled c. stayed the same d. decreased significantly e. quadrupled
If Tie-Dyed T-Shirts is currently employing labor so that the wage is greater than the marginal revenue product of labor, it must also be true that
A. the price of the product must be greater than marginal cost. B. the price of the product must be less than marginal cost. C. total revenues would be less than total costs. D. the wage is less than marginal cost.