If a firm was owned by its employees,
A) there is a higher probability that wage reductions would outweigh layoffs.
B) those in charge would not act any differently than regular owners; there would still be layoffs.
C) those not in charge would remain risk neutral.
D) wage reductions would be lower than if the firm was run for profit.
A
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In order to avoid the imposition of other types of trade barriers, foreign producers will sometimes agree to voluntary export restraints. With voluntary export restraints, foreign producers
A) must agree to import an equal quantity of products that they export. B) agree to meet specific quality standards required by the importing country. C) pay a tax on all products they export. D) limit their exports to a country.
For which of the following goods is the marginal benefit of search likely to be greatest?
a. a pair of shoes b. an automobile c. a jar of honey d. a loaf of bread e. a pair of jeans