sample test

sample test - Exam Name_ MULTIPLE CHOICE. Choose the one...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Internal economies of scale arise when the cost per unit A) rises as the average firm grows larger. B) rises as the industry grows larger. C) falls as the industry grows larger. D) falls as the average firm grows larger. E) none of the above 2) External economies of scale A) tends to result in large profits for each firm. B) may be associated with a perfectly competitive industry. C) cannot be associated with a perfectly competitive industry. D) tends to result in one huge monopoly. E) none of the above 3) Modeling trade in monopolistic industries is problematic because A) collusion among oligopolists makes usable data rare. B) there are no models of oligopoly behavior. C) there is no one generally accepted model of oligopoly behavior. D) it is difficult to find an oligopoly in the real world. E) none of the above 4) Where there are economies of scale, an increase in the size of the market will A) increase the number of firms and raise the price per unit. B) decrease the number of firms and lower the price per unit. C) decrease the number of firms and raise the price per unit. D) increase the number of firms and lower the price per unit. E) none of the above 5) If output more than doubles when all inputs are doubled, production is said to occur under conditions of A) imperfect competition. B) inter-industry trade. C) intra-industry trade. D) increasing returns to scale. E) none of the above 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6) If some industries exhibit internal (firm specific) increasing returns to scale in each country, we should not expect to see A) high levels of specialization in both countries. B) intra-industry trade between countries. C) perfect competition in these industries. D) inter-industry trade between countries. E) none of the above 7) International trade based on external scale economies in both countries is likely to be carried out by a A) relatively small number of price competing firms. B) monopoly firms in each country/industry. C) relatively large number of price competing firms. D) relatively small number of competing oligopolists. E) none of the above
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 7

sample test - Exam Name_ MULTIPLE CHOICE. Choose the one...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online