The Federal Reserve is responsible for issuing currency.

Which of the following products would be used in calculating GDP?

(A) Plastic manufactured in a factory in Kentucky and sold to toy manufacturers around the world to make plastic toys. (B) Cotton cloth manufactured in India and sold to clothes makers in the United States. (C) Toys manufactured in China at a factory owned by a U.S. company. (D) Cars manufactured in Tennessee at a factory owned by a Japanese automobile company.

If some industries exhibit increasing returns to scale in each country, we should not expect to see

A) intraindustry trade between countries. B) perfect competition in these industries. C) interindustry trade between countries. D) Either B or C.