Which of the following can best explain the clustering of some industries, such as banking and finance in New York City and high-technology computer production in Silicon Valley?
A. Perfect competition
B. External scale economies
C. Comparative advantage
D. Intra-industry trade
Answer: B
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From an economic perspective, the socially best amount of pollution control is that amount in which:
a. there is zero pollution. b. the private plus external marginal costs are equal to the private plus external marginal benefits. c. the private plus external marginal costs are less than the private plus external marginal benefits. d. the private marginal costs are equal to the private marginal benefits. e. the external costs equal the external benefits.
A case for equality of income distribution can be based on
a. the randomness of personal misfortune b. the linkage between effort and reward c. the ethic "from each according to his or her ability to each according to his or her ability" d. allowing the market to dictate outcomes e. maximization of opportunity
Which of the following weakened the demand stimulus effects of the fed's low interest rate policy during the years following the 2008-2009 recession?
a. Rising stock prices in response to the low-interest rate policy. b. The lower cost of borrowing to undertake business investment. c. An increase in the velocity of money. d. A reduction in earnings of senior citizens and others from money market accounts, saving deposits, and similar forms of savings.
In the prisoners' dilemma game, confessing is a dominant strategy for each of the two prisoners
a. True b. False Indicate whether the statement is true or false