Constant returns to scale (CRS) implies ________
A) constant returns to labor
B) constant returns to capital
C) increasing marginal products
D) variable total factor productivity
E) diminishing marginal products
E
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Which of the following is not a characteristic of "perfect" markets?
A) Buyers and sellers can transact with each other directly if transaction costs are set at an appropriate level. B) Securities are infinitely divisible. C) Buyers and sellers know the true quality of what they are buying and selling. D) All of the above are characteristics of perfect markets.
One of the primary objectives of the WTO is:
a. to create trade restrictions across the countries. b. to reduce trade barriers created by the different countries. c. to enable certain countries to maintain their autarkic conditions. d. to enable the western countries to emerge as major players in the international trade. e. to redistribute wealth from the first world to the third world countries.