What is meant by an "industrial district" and what are the three main sources of the economic advantages derived from locating in such a district?
What will be an ideal response?
An industrial community is a geographical concentration of firms in the same industry. Silicon Valley and Bollywood are modern examples. The advantages are (1 ) specialized suppliers, (2 ) labor market pooling, and (3 ) knowledge spillovers.
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A decrease in investment causes the price level to ________ in the short run and ________ in the long run
A) decrease; decrease further B) increase; decrease C) increase; increase further D) decrease; increase
What are the sources of government failure?
Suppose that John allocates $10,000 of his disposable income for necessities. Any additional income beyond that is both spent and saved. Assume he has a disposable annual income of $50,000 and an MPC=0.8. Based on this information the amount of money John should save would be:
A. $10,000. B. $40,000. C. $12,000. D. $8,000.
If the firms in an oligopolistic industry can collude effectively (from the firms' viewpoints), the resulting price and output in the market will be most similar to that of
a. a competitive price-searcher market. b. pure monopoly. c. bilateral monopoly. d. a competitive price-taker market.