If All Inputs Are Doubled and the Resulting Output Increases

question 40

Multiple Choice

If all inputs are doubled and the resulting output increases by less than a factor of two, the technology features

• A) increasing returns to scale
• B) decreasing returns to scale
• C) constant returns to scale

---

Definitions:

Protected Market

A market shielded from foreign competition by tariffs, quotas, or other trade barriers to protect domestic industries.

Migration

The movement of people from one area to another, often across borders or within a country, for the purpose of settling, work, or seeking better living conditions.

Trade Restrictions

Measures imposed by governments to control the amount and types of goods and services traded across borders, such as tariffs, quotas, and embargoes.

Tariffs And Quotas

Government-imposed trade restrictions; tariffs are taxes on imported goods, while quotas limit the quantity that can be imported.