Assume that the European Union passes a new trade policy that will only allow trade with South American countries that pass environmental laws that are the same as those of member countries in the EU
The argument that is made is that this will provide a level playing field for the EU in competing with South American nations in international trade. Critically evaluate this argument.
This may seem like a way of making a level playing field but it may just be a trade restriction in disguise. South American countries are not likely to be able to comply with such a demand. The reason is that they are poorer relatively speaking compared to member nations of the EU. A clean environment is a normal good whose demand increases with the economic prosperity of the country. This doesn't sound like a good policy.
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The demand curve faced by a monopolistically competitive firm coincides with its marginal revenue curve
a. True b. False Indicate whether the statement is true or false
Blanket standards on imports usually address issues affecting:
A. foreign production practices. B. domestic consumers. C. domestic producers. D. They can be used to address any of these.
The decrease in the price of gasoline to a national average of less than $2.0 during the summer of 2016 was most likely a result of
A) an increase in demand due to reduced summer driving. B) an increase in supply resulting from higher refinery output. C) an increase in demand due to increase in summer driving along with a decrease in supply resulting from reduced refinery output. D) an increase in supply resulting from higher refinery output along with a decrease in demand in summer driving.
To find economic profit from accounting profit, it is necessary to
A) subtract dividends. B) add retained earnings. C) subtract the opportunity cost of capital. D) add depreciation expense.