Which of the Following Is True

question 12

Multiple Choice

Which of the following is true?

• A) When economies of scale are important in an industry, the domestic market of a small country may not be large enough to support cost-efficient firms.
• B) In small countries, firms in industries where economies of scale are important will tend to export little, if any, of their output.
• C) The size of the trade sector (exports plus imports) as a share of GDP will generally be larger in more populous countries than in smaller less-populated countries.
• D) Countries with higher trade barriers have higher growth rates.

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Definitions:

Progressive Policies

Policies aimed at reforming and improving society through governmental action, often focusing on issues of social justice, equality, and environmental protection.

Welfare

A government program that provides financial aid and services to individuals and families in need.

Public Confidence

The level of trust and belief that the general public has in the effectiveness, integrity, and policies of an organization, institution, or government.

Political Institutions

Structures and mechanisms of social order and governance that support society's collective decision-making processes.