Which of the following statements is true?
A. Firms are unlikely to relocate their high-pollution production to countries with lax environmental laws because they fear that such moves will result in adverse effects on their reputations.
B. Evidence shows that measures to keep the environment clean represent a large percentage of the total costs of production for a firm in a country with strict environmental laws.
C. There are large incentives for firms to relocate from countries with strict environmental laws to countries with lax environmental regulation.
D. Imposition of a tax on the production of a particular high-pollution product typically has a greater impact on consumer surplus than on producer surplus.
Answer: A
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If a firm has already paid or has agreed to pay for something, we call that cost:
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If the economy grew at 7 percent from 2015 to 2016 and real GDP was 400 in 2015, what was real GDP in 2016?
A. 393 B. 400 C. 407 D. 428
The long-term rate of unemployment, determined by structural forces in labor and product markets, defines the
A. Natural rate of unemployment. B. Cyclical rate of unemployment. C. Frictional rate of unemployment. D. Seasonal rate of unemployment.