If Production Is Characterized by Increasing Returns to Scale,then

question 7

Multiple Choice

If production is characterized by increasing returns to scale,then

• A) the economy is self-sufficient and will not engage in foreign trade
• B) intra-industry trade is likely to occur
• C) the nation is more likely to be a net importer than a net exporter
• D) the production possibilities set is limitless
• E) smaller production runs are more economical than large ones

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Definitions:

Compounded Semi-Annually

Interest added to the principal of a deposit or loan every six months, affecting total interest earned or paid.

Periodic Interest Rate

The interest rate applied to a loan or savings account over a specific period of time, often monthly or annually.

Payment Interval

Payment interval is the frequency at which recurring payments are made, such as monthly, quarterly, or annually for loans, rents, or subscriptions.

Compounded Annually

This refers to the process by which the interest earned on an investment or savings is calculated once a year, adding to the principal for the next year's interest calculation.