An export industry is said to exhibit increasing returns to scale when
(a) a large-scale organization has significant competitive advantages over small-scale activities.
(b) labor utilization increases by 50 percent but export output production increases by only
20 percent.
(c) its small-scale business activity has significant comparative advantages over large-scale productions.
(d) use of capital increases by 10 percent leads to an increase in export production by 10 percent.
(a)
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More people started building houses in earthquake-prone regions when the government of Polonia launched an insurance program for houses in this region. This is an example of ________
A) adverse selection B) a positive externality C) moral hazard D) herd behavior
Assume that a doctor makes $200 per hour, a lawyer $250 per hour, an architect $140 per hour, a professor $50 per hour, and a waiter $35 per hour. Which of these professionals is most likely to spend time to negotiate with a car dealer?
a. The doctor b. The lawyer c. The architect d. The professor e. The waiter
In the U.S., health care may be expensive, but Americans enjoy the longest life-expectancy of any nation
a. True b. False Indicate whether the statement is true or false
What is exchanged in the financial sector?
A. Only assets with a money price B. Money only C. Goods and services D. All financial assets