If production is subject to economies of scale,
a. countries can gain from trade if each nation specializes
b. one country will develop an absolute advantage in the production of all goods
c. higher output levels result in higher average production costs
d. one country will develop a comparative advantage in the production of all goods
e. countries cannot gain from trade
A
Economics
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The earliest type of exchange involved _____
a. coins b. barter c. commodity money d. fiduciary money e. fiat money
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If Q is total real output, K is capital in use, and L is labor employed, then _____ is the formula to calculate the productivity of labor
a. K/L b. L/K c. Q/L d. Q/K e. (Q + K)/L
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