Explain how harmonization of standards might increase productive efficiency
What will be an ideal response?
The harmonization of technical standards having to do with product design or performance can create greater efficiency since firms have to consider only one set of standards, reducing the costs of making modifications for different markets.
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Laws regulating pollution emissions can change the size of the economic pie
Indicate whether the statement is true or false
Suppose the government has declared beer to be an illegal substance and has imposed equal penalties on any person caught buying a beer and on any person caught selling a beer
Using the above figure, in which CBL is the cost of breaking the law, what is the equilibrium price and quantity with this new law in effect? A) $5 per quart and 300 quarts of beer B) $3 per quart and 500 quarts of beer C) $3 per quart and 100 quarts of beer D) $1 per quart and 300 quarts of beer