Product differentiation and internal economies of scale yield gains from trade in the form of
A) lower production costs and a greater variety of goods.
B) higher profits and lower trade costs.
C) the proximity-concentration effect.
D) a proliferation of competitive firms.
E) the substitution of immigration for foreign direct investment.
A
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An external cost in the production of a good creates a difference between the
i. costs borne by the producer and the costs borne by society in general. ii. efficient quantity of output and the equilibrium quantity of output. iii. marginal social cost and the marginal private cost. A) i only B) iii only C) ii and iii D) i, ii, and iii E) i and iii
A firm produces construction equipment, some of which it exports. Which of the following effects of an increase in the government budget deficit would likely reduce the quantity of equipment it sells?
a. the change in the interest rate and the change in the exchange rate b. the change in the interest rate but not the change in the exchange rate c. the change in the exchange rate but not the change in the interest rate d. neither the change in the interest rate nor the change in the exchange rate
Recall the Application about the impact of disability insurance benefits on the labor force participation rate to answer the following question(s).According to the article, why were Vietnam War veterans (compared with other veterans) with Type 2 diabetes more likely to enroll in disability programs?
What will be an ideal response?
Which of the following statements is not true?
A. Trade is beneficial because it allows consumption beyond the production possibility frontier. B. Trade is beneficial because it allows all domestic industries to increase production. C. Trade is beneficial because it allows more efficient production. D. Trade is beneficial because it allows consumers to buy goods at cheaper prices.