Which of the following is a reason why trade and geography are linked?
A) There are high costs of locating in large urban areas.
B) Many industries have no economies of scale.
C) Competition means that all firms want to locate near each other.
D) Some locations give access to pools of skilled labor or special resources.
Question 2
A heterodox model would not call for freezing wages and prices, but an orthodox one would.
Indicate whether the statement is true or false