If Some Industries Exhibit Internal Increasing Returns to Scale in Each

question 3

Multiple Choice

If some industries exhibit internal increasing returns to scale in each country,we should not expect to see

• A) perfect competition in these industries.
• B) intra-industry trade between countries.
• C) inter-industry trade between countries.
• D) high levels of specialization in both countries.
• E) increased productivity in both countries.

---

Definitions:

Expenditure

Actual payment of cash or cash equivalent for goods or services, or a charge against available funds in settlement of an obligation as evidenced by an invoice, receipt, voucher, or other such document; acquired material, property, or labor in exchange for money.

Acquired Material

Items or substances that are obtained or collected for use, often referring to resources gathered for a specific project or purpose.

Liabilities

Anything to which a person is liable, responsible, legally bound; debts or accounts payable (A/P) owed by the business.

Accounts Payable

The amount of money owed by a company to its creditors or suppliers for goods and services received but not yet paid for.