Smith argues that American producers cannot compete with foreign producers because wages are lower in foreign countries than in the United States. Smith is
A) advancing the foreign export subsidies argument for protectionism.
B) making the mistake of believing that high wages mean high costs.
C) advancing the antidumping argument for protectionism.
D) making the mistake of believing that productivity is higher in foreign countries than in the United States.
E) none of the above
B
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Which of the following must be present to reach a private solution to an externality problem?
A) The total number of people, creators of the problem and those affected, must be relatively large to justify negotiating a solution. B) The transactions costs to negotiate a solution must be relatively low. C) The government must approve the solution for it to be a legal solution. D) A majority of the parties affected by the externality must agree to a solution.
In the United States, all ozone-depleting substances were phased out by 2005 with the exception of
a. CFCs b. halons c. methyl bromide d. HCFCs e. none of the above