An internal economy means that ________, while an external economy means that ________.

An internal economy means that ________, while an external economy means that ________.
 
  A) firm costs fall as firm output increases, firm costs fall as industry output increases
  B) firm costs fall as industry output increases, firm costs fall as firm output increases
  C) firm costs fall as firm output increases, firm costs rise as industry output increases
  D) firm costs fall as industry output increases, firm costs rise as firm output increases

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Question 2 - The reform movements that began in many Latin American economies in the late 1980s favored
 
  A) competitive devaluations.
  B) stronger military budgets.
  C) imports substitution policies.
  D) a stronger role for markets and more openness.

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Question 3 - External debt is not usually a problem for high-income countries for which of the following reasons?
 
  A) High-income countries take out loans denominated in their own currency.
  B) High-income countries do not need to borrow.
  C) High-income countries are too large to default on loans.
  D) High-income countries use loans to build infrastructure and create economic growth.