Which of the following is an advantage for the host country of a multinational corporation?
(A) Greater political power.
(B) Greater income from tariffs.
(C) Greater protective tariffs.
(D) Greater employment opportunities.
Ans: (D) Greater employment opportunities.
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If the marginal benefit of reducing emissions of some air pollutant is greater than the marginal cost
A) the marginal benefit will rise and the marginal cost will fall as further reductions are made. B) private businesses, rather the consumers, should be made to pay for the cost of further reductions. C) further reductions will make society better off. D) economic efficiency will be achieved when emissions are reduced to zero.
Increases in the minimum wage are intended to raise the incomes of low-income workers. Many economists favor a different policy to achieve this goal, a policy that avoids the deadweight losses that result from the minimum wage. What is this policy?
A) the Alternative Minimum Tax B) the earned income tax credit C) distribution of food stamps to low-income consumers D) distribution of vouchers that can be used for rent or mortgage payments