If there are implicit costs of production ?

A. accounting profit will exceed economic profit
B. economic profit will always be zero
C. economic profit will exceed accounting profit
D. accounting profit will always be zero

If a production function exhibits diminishing marginal product the slope of the corresponding total-cost curve ?

A. is liner (a straight line)
B. could be any of these answers
C. becomes steeper as the quantity of output increases
D. become flatter as the quantity of output increases.

Which of the following is a variable cost in the short run ?

A. rent on the factory
B. wages paid to factory labor
C. interest payments on borrowed financial capital
D. payments on the lease for factory equipment

In the long run, if a very small factory were to expand its scale of operations it is likely that it would initially experience ?

A. an increase in average total costs
B. diseconomies of scale
C. economies of scale
D. constant returns to scale

The efficient scale of production is the quantity of output that minimizes ?

A. average fixed cost
B. average total cost
C. average variable cost
D. marginal cost

Some economists and third-world policy makers criticize MNCs arguing that they have a negative effect on the developing country because they ?

I- Increasing the ldc’s technological dependence on foreign sources resulting in less technological innovation by local workers
Ii- hamper local entrepreneurship and investment in infant industries
Iii- increase unemployment rates from unsuitable technology
Iv- restrict subsidiary exports when they undercut the market of the parent company

Carmen Reinhart and Kenneth Rogoff explain the paradox of capital flows from poor to rich countries by ?

A. The brain drains from ldcs to dcs
B. The price role of political and credit-market risk in many ldcs
C. The law of increasing returns that implies that the marginal productivity of capital is higher in ldcs
D. The fat that the dc capital market is perfectly competitive

The U.S real food aid, as well as food reserves dropped from the 1960s to the 1980s partly because ?

A. The transportation and storage cost increased tremendously
B. Proponents of basic-needs attainment opposed food-aid
C. U.s farm interests wanted to reduce surplus grain stocks
D. Agricultural production suffered excessively due to weather changes

For Harvard’s Dani Rodrik Globalization involves ?

A. Decreasing autonomy of the nation-state involves
B. The increasing international integration of markets for goods services and capital
C. Changes of a traditional culture of a country to a western culture
D. Giving aid to poor countries to improve their economy politics and social status

U.S total official development assistance to developing countries is ?

A. Lowest among the oecd countries
B. Higher currently than it was in the 1960s and 1970s
C. Is equivalent to holland’s aid
D. None of the above statements is true