Economies of Scale Are Created by Greater Efficiency of Capital

question 29

Multiple Choice

Economies of scale are created by greater efficiency of capital and by:

• A) longer chains of command in management.
• B) better wages for labour.
• C) smaller plant sizes.
• D) increased specialisation of labour.

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Definitions:

World Trade Organization

A global organization whose member nations agree to negotiate and resolve disputes about tariffs and trade restrictions.

Free Trade

An economic policy that allows for the unrestricted import and export of goods among countries without the imposition of tariffs, quotas, or other restrictions.

Tariffs and Quotas

Government-imposed taxes on imported goods (tariffs) and limits on the quantity of goods that can be imported (quotas) to protect domestic industries from foreign competition.

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A policy or clause in an agreement ensuring that a country or party receives treatment at least as favorable as that given to any other country or party.