Requiring a firm with international operations to follow the standards of its home country instead of those of the foreign country has all of the following advantages EXCEPT
A) it takes care of the fear of a race-to-the-bottom by making it impossible for a home-based company to exploit low standards.
B) it shifts the costs of improved standards to firms and consumers in high-income countries.
C) it avoids the problems of high-income countries dictating what standards are to be used. In this situation, firms that cross national boundaries must conform to whichever standards are higher.
D) it is a comprehensive measure, since it addresses the problem of production in foreign firms as well as firms from high-standards countries that relocate abroad.
D
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Which of the following is included in Germany's GDP?
i. BMWs produced in a German-owned factory in South Carolina ii. the value of the stocks sold on the German stock exchange, the Frankfurt Stock Exchange iii. china produced by the English-owned Wedgewood Company at a factory in Berlin, Germany A) i and iii B) ii only C) iii only D) i and ii E) None of the above answers is correct.
If the demand for a product remains the same and the supply falls,
A) the market clearing price will fall and the equilibrium quantity will rise. B) the market clearing price will rise and the equilibrium quantity will fall. C) both the market clearing price and the equilibrium quantity will fall. D) both the market clearing price and the equilibrium quantity will rise.
Which statement is true?
A. The Kemp-Roth Tax Cut of 1981 and the Tax Reform Act of 1986 both lowered federal personal income tax. B. The Kemp-Roth Tax Cut of 1981 and the Tax Reform Act of 1986 raised federal personal income tax. C. The Kemp-Roth Tax Cut of 1981 raised federal personal income tax while the Tax Reform Act of 1986 lowered them. D. The Kemp-Roth Tax Cut of 1981 lowered federal personal income tax while the Tax Reform Act of 1986 raised them.
A country operates inside its production possibilities curve; this may be caused by
A) unemployed resources. B) total efficiency in industry. C) a new resource being discovered. D) a lack of modern products being produced.