Specialization and trade can take place only if a country is endowed with more of something compared to other countries

If the velocity of money is completely insensitive to changes in the rate of interest, the

A) LM curve will be horizontal. B) LM curve will be vertical. C) IS curve will be horizontal. D) IS curve will be vertical.

Diseconomies of scale:

a. occur only in the short run. b. occur when at least one resource is fixed and unit costs decrease as the quantity of production increases. c. occur when at least one resource is fixed and unit costs increase as the quantity of production increases. d. are represented by the upward-sloping portion of the short run average total cost curve. e. occur when all resources are variable and unit costs increase as the quantity of production increases.