In his book, An Inquiry into the Nature and Causes of the Wealth of Nations, Adam Smith credits economies of scale to
a. competition.
b. opportunity costs.
c. specialization.
d. incentives.
c
You might also like to view...
Japan and China produce guns and rice. The country with the lowest opportunity cost of guns (in terms of rice) will
A. import guns. B. have a comparative advantage in guns. C. have an absolute advantage in guns. D. have a comparative advantage in rice.
Government expenditures on capital goods such as roads could increase aggregate supply. Such effects on aggregate supply are likely to matter more in the short run than in the long run
a. True b. False Indicate whether the statement is true or false
If the domestic consumers of a good benefit from free trade, it suggests that the country:
A. is a net importer of that good. B. has a comparative advantage in that good. C. is not able to produce that good. D. is a net exporter of that good.
The optimal bid in a first-price, sealed-bid auction with independent private values is to bid:
A. less than the true value of the item. B. the true value of the item and more than the true value of the item, depending upon whether value estimates are affiliated. C. the true value of the item. D. more than the true value of the item.