Question

Many large IT firms find it advantageous to have their headquarters in an area of California knows as ‘Silicon Valley’. These advantages are likely to take the form of:

a) Economies of scale.

b) Economies of scope.

c) Oligopoly.

d) Economies of agglomeration.

Compared with autarky (a situation where countries try to be self-sufficient and do not engage in trade), the combination of specialisation and trade is likely to:

a) Shift the feasible production frontier to the right (outwards).

b) Shift the feasible consumption frontier to the left (inwards).

c) Shift the feasible production frontier to the left (inwards).

d) Shift the feasible consumption frontier to the right of the feasible production frontier.

Answer 1