An export industry is said to exhibit increasing returns to scale when
(a) a large-scale organization has significant competitive advantages over small-scale activities.
(b) labor utilization increases by 50 percent but export output production increases by only
20 percent.
(c) its small-scale business activity has significant comparative advantages over large-scale productions.
(d) use of capital increases by 10 percent leads to an increase in export production by 10 percent.
(a)
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A price floor represents
A) a maximum price that can be legally charged for a product or service. B) a minimum price that can be legally charged for a good or service. C) a lottery imposed upon producers by the government. D) a first come, first served mechanism for controlling prices.
The size of the spending multiplier depends on the level of real GDP
a. True b. False Indicate whether the statement is true or false