Economies of Scale and the Experience Curve

question 78

Multiple Choice

Economies of scale and the experience curve:

• A) explain how international trade in manufactured goods will be linked to gross national income.
• B) state that a nation will trade goods that can be produced with the production factor that is most abundant.
• C) explain why many companies will engage in international trade.
• D) two of the above.
• E) none of A, B, or C.

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Definitions:

Cocoa

A powder made from roasted and ground cacao seeds, used in the making of chocolate, as well as in baking and cooking.

Leather Jackets

Clothing items made from the hides of animals, typically cows or sheep, treated for durability and aesthetics.

Whips

Flexible, often long and slender pieces of material typically made of leather or a similar substance, used either for driving animals or as a means of punishment.

Utility Function

A representation of an individual’s preference ordering over a set of outcomes, quantifying the satisfaction or happiness derived.