9 When there are extenal economies of scale an increase in t

9. When there are extenal economies of scale, an increase in the size of the market will A) decrease the number of firms and lower the price per unit. 8) increase the number of firms and lower the price per unit. C) increase the number of firms and raise the price per unit. D) not affect the number of firms, but will lower the price per unit. E) decrease the number of firms and raise the price per unit. 10. Most developing countries opposoe including labor standards in trade agreements because A) they do not want to improve wages for their workers. B) they believe this would create an uneven playing field. C) multinational corporations control them. D) they believe this would involve a loss of their national sovereignty. E) they believe this would limit their ability to export 11. The opportunity to exploit economies of scale is one of the gains to be derived by removing tariffs and other trade distortions. These gains will be the result of a decrease in A) world prices of imports. B) the consumption distortion loss triangle. C) international labor mobility D) excessive entry and inefficient business practices. E) the production distortion loss triangle. 12. The growth successes of the high performance Asian economies A) rejects the belief that economic development requires import substitution policies B) rejects the belief that export-oriented industrialization is likely to promote economic development. C) enforces United States\' hesitation to trade with developing countries. LD) suggests that free trade policies are required for successful economic development. E) supports the belief that economic development requires import substitution policies

Solution

9-increase the number of firms and lower the price per unit

10-they believe this would limit their ability to export

11-excessive entry and inefficient business practices

12-D