Which of the Following Is Not Cited as One of the Factors

question 6

Multiple Choice

Which of the following is not cited as one of the factors that accounts for the large-scale production that exists in many sectors of the economy?

• A)Economies of scale.
• B)Advertising and image differentiation.
• C)The minimum efficient scale of operation in many industries is quite high relative to market demand.
• D)Risk spreading.

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Definitions:

Fixed Exchange Rate

A rate of exchange that is set in some way and therefore prevented from rising or falling with changes in currency supply and demand.

FX Reserves

Foreign exchange reserves, assets held on reserve by a central bank in foreign currencies, used to back liabilities on their own issued currency as well as to influence monetary policy.

Foreign Investment

The investment of capital by individuals, firms, or governments in business interests located in another country.

Consumer Spending

The total amount of money spent by households and individuals on goods and services within a specific period, a critical indicator of economic health.