Even when earning zero profit, exporters (nearly) equalize prices across markets. ?
Answer the following statement true (T) or false (F)
True
Rationale: Differences in prices tend to be small in most markets because exporters and importers ship large quantities of goods, and therefore need only a tiny difference in price per unit to continue shipping goods from one place to another.
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The socially efficient level of output is determined where:
a. marginal social cost equals marginal social benefit. b. marginal private cost equals marginal social benefit. c. average social cost equals average social benefit. d. average private cost equals average social benefit.
Social insurance programs are designed to:
A. keep those in chronic poverty fed, clothed, and housed. B. aid those communities that become impoverished. C. protect against the temporary hard times that can lead to transient poverty. D. None of these is true.
In the absence of environmental protection laws, firms pollute because:
A. business owners do not believe that pollution is a problem. B. controlling emissions costs money, thereby reducing profits. C. the cost pollution imposes on society is small relative to the cost of reducing pollution. D. business owners follow different norms than do environmentalists.
One key assumption of the theory of public choice is that individuals
A) are always in favor of the collective well-being of the public instead their own well-being. B) are always concerned about the well-being of other individuals in society. C) act differently between the public sector and the market sector. D) act within the political process to maximize their individual well-being.