If the positive externalities associated with learning by doing are sufficiently great, production will be characterized by:
A. decreasing returns to scale.
B. increasing returns to scale.
C. diminishing marginal productivity.
D. increasing marginal productivity.
Answer: B
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Sustained economic growth generally occurs when a nation
A) abandons the market system in favor of central economic planning. B) abandons the rule of law in favor of a series of licenses, regulations, and tariffs to control and protect the domestic economy. C) subsidizes loss-generating enterprises and thereby preserves jobs and incomes. D) creates conditions where people are free to specialize and exchange.
Total physical product is maximized if marginal physical product is zero.
Answer the following statement true (T) or false (F)
Icy Treats is a large Italian ice dessert chain with franchises located throughout the United States. Icy Treats' advertising will likely focus on which of the following?
A) promoting Icy Treats locations in a specific state B) promoting a struggling Icy Treats location in Memphis, Tennessee C) promoting a successful Icy Treats location in Memphis, Tennessee D) promoting the enjoyment of eating Icy Treats' icees
International trade can be correctly considered as an example of a zero-sum game
a. True b. False Indicate whether the statement is true or false