If the firms in a market have constant returns to scale internally while there are external economies of scale for the industry, a firm's long-run supply curve will be ________ and the long-run market supply curve will be ________.
A) downward sloping; downward sloping
B) upward sloping; horizontal
C) horizontal; downward sloping
D) downward sloping; horizontal
E) upward sloping; downward sloping
Question 2 - Since World War II, the likelihood that any single item in the typical consumption basket of a consumer in the U.S. originated outside of the U.S.
A) remained constant.
B) increased.
C) decreased.
D) fluctuated widely with no clear trend.
E) increased slightly before dropping off.
Question 3 - ________ would gain from expanded immigration.
A) Domestic labor
B) Domestic capital
C) Both domestic labor and capital
D) Neither domestic labor nor capital
Question 4 - According to the Heckscher-Ohlin (HO) model the source of comparative advantage is a country's
A) technology.
B) advertising.
C) factor endowments.
D) Both A and C.
Question 5 - The principle of subsidiarity is a way to
A) divide power between local governments and unions.
B) provide support for industries in decline.
C) provide support for industries under pressure from foreign competition.
D) divide power between national governments and the EU.
E) divide EU tax money among the member countries.
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