Intraindustry trade can be explained in part by
A) transportation costs within and between countries.
B) problems of data aggregation and categorization.
C) increasing returns to scale.
D) All of the above.
D
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Which of the following is a characteristic of an oligopoly?
a. Mutual interdependence in pricing decisions. b. Independent pricing decisions. c. Lack of control over prices. d. All of these are true.
Which of the following sectors in the economy accounted for about 70% of the spending in the U.S. during 2009?
a. The government b. Firms c. The foreign sector d. Investors e. Households
The concept of opportunity cost exists because
A. the value of services is hard to determine. B. shortages occur. C. goods have different prices. D. resources are scarce.
Refer to the above figure. Suppose the equilibrium moves from E' to point E. An event that could have caused this movement is
A. an increase in the real interest rate in the United States. B. an increase in the perceived stability of the U.S. economy. C. an increase in demand for Japanese-produced goods by U.S. residents. D. an increase in U.S. productivity.