Question 1

External economies of scale arise when the cost per unit

Accepted Answer

A)  falls as the industry grows larger and rises as the average firm grows larger. 
B)  rises as the industry grows larger and falls as the average firm grows larger. 
C)  falls as the industry and the average firm grows larger. 
D)  remains constant over a broad range of output. 
E)  rises as the industry and the average firm grows larger. 
A)  falls as the industry grows larger and rises as the average firm grows larger. 
B)  rises as the industry grows larger and falls as the average firm grows larger. 
C)  falls as the industry and the average firm grows larger. 
D)  remains constant over a broad range of output. 
E)  rises as the industry and the average firm grows larger.

Question 2

Restaurant meals are an example of a ________ good and clothing is an example of a ________ good. The pattern of interregional trade is determined primarily by ________.

Accepted Answer

A)  nontraded; traded; external economies. 
B)  traded; nontraded; internal economies 
C)  nondurable; durable; natural resource 
D)  durable; nondurable; natural resources 
E)  consumer; style; population 
A)  nontraded; traded; external economies. 
B)  traded; nontraded; internal economies 
C)  nondurable; durable; natural resource 
D)  durable; nondurable; natural resources 
E)  consumer; style; population

Question 3

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?

Accepted Answer

An industrial community is a geographica

Question 4

Is it possible for an equilibrium that is consistent with purely competitive conditions to arise in an industry with positive scale economies ? If so, explain how this could happen. If not, why not?

Accepted Answer

Yes. If the scale economies we

Question 5

One advantage of the specialization that results from international trade is that countries can take advantage of

Accepted Answer

A)  scale economies. 
B)  production diversification 
C)  smaller countries. 
D)  taste reversals. 
E)  lower transport costs. 
A)  scale economies. 
B)  production diversification 
C)  smaller countries. 
D)  taste reversals. 
E)  lower transport costs.

Question 6

The existence of external economies of scale

Accepted Answer

A)  may be associated with a perfectly competitive industry. 
B)  cannot be associated with a perfectly competitive industry. 
C)  tends to result in one huge monopoly. 
D)  tends to result in large profits for each firm. 
E)  focuses more on individual firms than the industry as a whole. 
A)  may be associated with a perfectly competitive industry. 
B)  cannot be associated with a perfectly competitive industry. 
C)  tends to result in one huge monopoly. 
D)  tends to result in large profits for each firm. 
E)  focuses more on individual firms than the industry as a whole.

Question 7

Why are increasing returns to scale and fixed costs important in models of international trade and imperfect competition?

Accepted Answer

There are many answers. Three of these a

Question 8

External economies of scale often arise because similar firms

Accepted Answer

A)  locate in the same geographic region. 
B)  collude to fix prices and increase profits. 
C)  have excellent internal logistics. 
D)  agree to cooperate to expand global trade. 
E)  have economies of scale in production. 
A)  locate in the same geographic region. 
B)  collude to fix prices and increase profits. 
C)  have excellent internal logistics. 
D)  agree to cooperate to expand global trade. 
E)  have economies of scale in production.

Question 9

A learning curve relates ________ to ________ and is a case of ________ returns.

Accepted Answer

A)  unit cost; cumulative production; dynamic increasing returns 
B)  output per time period; long-run marginal cost; dynamic increasing returns 
C)  unit cost; cumulative production; dynamic decreasing returns 
D)  output per time period; long-run marginal cost; dynamic decreasing returns 
E)  labor productivity; education; increasing marginal returns 
A)  unit cost; cumulative production; dynamic increasing returns 
B)  output per time period; long-run marginal cost; dynamic increasing returns 
C)  unit cost; cumulative production; dynamic decreasing returns 
D)  output per time period; long-run marginal cost; dynamic decreasing returns 
E)  labor productivity; education; increasing marginal returns

External economies of scale arise when the cost per unit

Restaurant meals are an example of a good and clothing is an example of a good. The pattern of interregional trade is determined primarily by .

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?

Is it possible for an equilibrium that is consistent with purely competitive conditions to arise in an industry with positive scale economies ? If so, explain how this could happen. If not, why not?

One advantage of the specialization that results from international trade is that countries can take advantage of

The existence of external economies of scale

Why are increasing returns to scale and fixed costs important in models of international trade and imperfect competition?

External economies of scale often arise because similar firms

A learning curve relates to and is a case of returns.

Introduction

World Trade: An Overview

Labor Productivity and Comparative Advantage: The Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: The Heckscher-Ohlin Model

The Standard Trade Model

Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

National Income Accounting and the Balance of Payments

Exchange Rates and the Foreign Exchange Market: An Asset Approach

Money, Interest Rates, and Exchange Rates

Price Levels and the Exchange Rate in the Long Run

Output and the Exchange Rate in the Short Run

Fixed Exchange Rates and Foreign Exchange Intervention

International Monetary Systems: An Historical Overview

Optimum Currency Areas and the European Experience

Financial Globalization: Opportunity and Crisis

Developing Countries: Growth, Crisis, and Reform

Filters

Exam 7: External Economies of Scale and the International Location of Production

External economies of scale arise when the cost per unit

Restaurant meals are an example of a ________ good and clothing is an example of a ________ good. The pattern of interregional trade is determined primarily by ________.

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?

Is it possible for an equilibrium that is consistent with purely competitive conditions to arise in an industry with positive scale economies ? If so, explain how this could happen. If not, why not?

One advantage of the specialization that results from international trade is that countries can take advantage of

The existence of external economies of scale

Why are increasing returns to scale and fixed costs important in models of international trade and imperfect competition?

External economies of scale often arise because similar firms

A learning curve relates ________ to ________ and is a case of ________ returns.

Introduction

World Trade: An Overview

Labor Productivity and Comparative Advantage: The Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: The Heckscher-Ohlin Model

The Standard Trade Model

Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

National Income Accounting and the Balance of Payments

Exchange Rates and the Foreign Exchange Market: An Asset Approach

Money, Interest Rates, and Exchange Rates

Price Levels and the Exchange Rate in the Long Run

Output and the Exchange Rate in the Short Run

Fixed Exchange Rates and Foreign Exchange Intervention

International Monetary Systems: An Historical Overview

Optimum Currency Areas and the European Experience

Financial Globalization: Opportunity and Crisis

Developing Countries: Growth, Crisis, and Reform

Filters

Restaurant meals are an example of a good and clothing is an example of a good. The pattern of interregional trade is determined primarily by .

A learning curve relates to and is a case of returns.