Statements about what ought to be are called

If a firm hires lazy employees,

A) it must pay them differently or hard-working employees will engage in moral hazard. B) it must pay them more or hard-working employees will engage in moral hazard. C) it must fire them before their laziness spreads to hard-working employees. D) the lazy employees make hard-working employees look good.

Refer to Figure 9.8. If free trade in sugar is replaced by a $50 tariff on sugar, the effect on domestic producer surplus will be to

A) lower it by $50. B) lower it by $12,500. C) leave it unchanged. D) raise it by $50. E) raise it by $12,500.