The cookie company in the mall hires workers to produce cookies. The workers are paid $75 per day, and the cost of renting the space in the mall is $250 per day. The total costs when three workers are hired is

Product differentiation and internal economies of scale yield gains from trade in the form of

A) lower production costs and a greater variety of goods. B) higher profits and lower trade costs. C) the proximity-concentration effect. D) a proliferation of competitive firms. E) the substitution of immigration for foreign direct investment.

In comparing the views of economists on stabilization policy in the 1960s with the current views of economists on stabilization policy, one can say

A) few economists in the 1960s favored stabilization policy, while most economists currently favor stabilization policy. B) economists' views on stabilization policy have changed very little since the 1960s. C) fewer economists currently believe it is possible to use stabilization policy to fine-tune the economy than in the 1960s. D) almost no economists in the currently believe stabilization policy should be used.