Since the 1980s, Wal-Mart stores have appeared in almost every community in America. Wal-Mart buys their goods in large quantities and therefore at cheaper prices. Walmart also locates its stores where land prices are low, usually outside of the community business district. Many customers shop at Wal-Mart because of low prices and free parking. Local retailers, like the neighborhood drug store,
often go out of business because they lose customers. This story demonstrates that
a. consumers are boycotting local retailers
b. Wal-Mart engages in illegal acts of monopolization
c. there are diseconomies of scale in retail sales
d. there are economies of scale in retail sales
e. Wal-Mart is managed by ruthless business people
D
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Which of the following trade agreements, which took effect in 1994 and was implemented over a 15-year period, eliminates all tariffs and other trade barriers between its members?
A) North American Free Trade Agreement B) Asian Pacific Economic Cooperation C) General Agreement on Tariffs and Trade D) World Trade Organization
Why would a firm knowingly hire lazy employees?
A) Lazy employees have positive marginal revenue product. B) Lazy employees have successfully sued firms in the past. C) The Americans with Disabilities Act mandates that laziness be considered a disability. D) Lazy employees make hard-working employees look good.