A lighthouse that serves a dangerous coastal area is built. The lighthouse cost $1 million to build and serves 100 ships a month. If the shipping in the area increases so that 200 ships pass by a month, the increase in additional costs of providing the

_____ is the argument that with globalization, countries compete for international investment by offering low or no environmental regulations or labor standards

a. "Free rider problem" b. "Tragedy of the commons" c. "Race to the bottom" d. "Flag of convenience" e. "Enlightened self-interest"

The cost disease of personal services stems primarily from the fact that

a. prices rise too slowly to provide public receipts. b. inflation has been with us since the early 1970s. c. personal service requires direct contact between producer and consumer. d. sellers of personal services have strong unions.