When there are no externalities
A) social costs are greater than private costs.
B) social costs are less than private costs.
C) private costs are greater than social costs.
D) private costs equal social costs.
Answer: D
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The main explanation for why the cheap foreign labor argument is a poor reason for restricting international trade is that:
a. workers who get paid less tend to have lower productivity than those who get paid more. b. all firms and workers gain when there are no restrictions on international trade. c. infant industries such as steel and automobiles need to be protected. d. specialization and free trade usually raise the prices of all the traded goods, so that the workers can get paid more. e. labor costs tend to be the same worldwide in the long run because of worker mobility.
A cartel attempts to increase profits in the industry by limiting the production of each member firm
a. True b. False Indicate whether the statement is true or false
It is sometime useful to view each step in the supply chain as a(n)
A) single market. B) integrated process. C) horizontal process. D) vertical process.
If a fast food restaurant was one of many hiring workers, the minimum wage was $7.25 an hour, and it was paying $8.00 an hour to attract workers, a cut in the minimum wage to $5.00 an hour would cause them to
A. lower their offering wage to $5.00 an hour. B. do nothing differently. C. pay $7.25. D. raise their offering wage to $9.00 an hour.