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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________ refers to funds available for immediate payment
A) Term deposits B) Velocity C) Mutual funds D) Liquidity
"When the cost of producing a unit of a good falls as its output rate increases" is the definition of
A) economies of scope. B) economies of scale. C) economic efficiency. D) technological efficiency.
Everything else held constant, if a factor increases the demand for ________ goods relative to ________ goods, the domestic currency will appreciate
A) foreign; domestic B) foreign; foreign C) domestic; domestic D) domestic; foreign
An increase in nominal GDP
A) is absolute real economic growth. B) is per capita real economic growth. C) is both per capita and absolute real economic growth. D) does not necessarily mean either absolute or per capita real economic growth.