Which of the following assumptions is common to both New Trade Theory and the model of intra-industry trade?
a) trade is a zero-sum game
b) production exhibits increasing returns to scale
c) firms behave cooperatively rather than competitively
d) exchange rates adjust to offset the effects of tariffs
e) in the long run, exports equal imports
b) production exhibits increasing returns to scale
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Before summer 2008, if you wanted a cell phone in Bhutan, you only had one choice: B-Mobile, owned and operated by the government. What does Kuenga Gyalthen mean he states that, "Up until now, because of the monopoly, we've all been suffering
So, I mean, it's finally time the consumer actually is king for a little while."? A) He believes that producer surplus is greater with competition. B) He believes that total surplus is greater with a monopoly. C) He believes that prices are lower with a monopoly. D) He believes that consumer surplus is greater with competition.
An increase in quantity demanded
a. results in a movement downward and to the right along a demand curve. b. results in a movement upward and to the left along a demand curve. c. shifts the demand curve to the left. d. shifts the demand curve to the right.
Some people make purchases without complete information because:
A. they are irrational. B. the benefit of having more information outweighs the opportunity cost of acquiring it. C. the opportunity cost of getting more information outweighs the benefit of having more information. D. No one makes purchases without complete information.
A direct relationship is expressed graphically as a:
A. positively sloped line or curve. B. negatively sloped line or curve. C. horizontal line. D. vertical line.