Identify the Correct Statement

question 121

Multiple Choice

Identify the correct statement.

• A)Economies of scope are unrelated to economies of scale.
• B)Economies of scope imply economies of scale,but not vice versa.
• C)Economies of scope imply economies of scale,and vice versa.
• D)Economies of scope usually imply diseconomies of scale.

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Definitions:

Unfavorable Balance

Describes a situation where a country's imports exceed its exports, leading to a deficit in the balance of payments.

International Monetary Fund

An international organization established in 1944 to promote global monetary cooperation, secure financial stability, and facilitate international trade.

International Banking Institution

A financial entity operating across national borders, dealing in currency exchange, foreign investment, and international loans.

Government Financing Institution

A state-owned or government-backed entity that provides financial services, including loans and guarantees, to support economic development.