ECO 336 USM CERTIFICATION SCRIPT
2026 COMPLETE QUESTIONS AND
CORRECT ANSWERS
◉An internal economy of scale means that ________, while an external
economy of scale means that ________. . Answer: firm costs fall as firm
output increases; firm costs fall as industry output increases
◉Comparative advantage cannot account for a significant portion of
world trade. . Answer: True
◉Which of the following is TRUE about monopolistic competition? .
Answer: It is competition among many firms producing similar but
differentiated products.
◉Suppose that the United States decided to subsidize a major
competitive effort by the semiconductor industry to bring to market
the next generation computer chip. Under the current rules of the
WTO and GATT, the U.S. effort is . Answer: not allowed.
2026 COMPLETE QUESTIONS AND
CORRECT ANSWERS
◉An internal economy of scale means that ________, while an external
economy of scale means that ________. . Answer: firm costs fall as firm
output increases; firm costs fall as industry output increases
◉Comparative advantage cannot account for a significant portion of
world trade. . Answer: True
◉Which of the following is TRUE about monopolistic competition? .
Answer: It is competition among many firms producing similar but
differentiated products.
◉Suppose that the United States decided to subsidize a major
competitive effort by the semiconductor industry to bring to market
the next generation computer chip. Under the current rules of the
WTO and GATT, the U.S. effort is . Answer: not allowed.
