1. Some people say that if there is a monopoly producer they can charge any price they want and the buyers have no choice but to buy the product at that price. Explain if that is true by considering a monopoly airline.
1. Some people say that if there is a
2. When you go to your dentist, she charges you the full price for your clean and shine but the dentist charges your grandmother (a senior citizen) a 20 percent discounted price for the same service. Explain why the dentist is able to make the
3. Even though everyone values clean air and wishes to breathe clean air, environmentalists and a large number of city dwellers would say that Canadian cities have excessive air pollution.
-
-
Explain why, if left to the free-market system, the problem of excessive air pollution would not be solved?
-
Name another problem that would not be solved, if left to the free-market system.
-
Suppose someone makes the following statement in support of introducing barriers to trade for importing men’s clothing into Canada:
The garment workers in the developing countries are barely paid a dollar an hour and no benefits, whereas the minimum wage in Canada is eight times or more high than that. It is obvious that we cannot compete with the cheap labour in those countries. Therefore, we should impose high enough tariffs for the imports from those countries to make a level playing field for our workers.
-
What are some of the reasons that workers in developing countries are paid less than Canadian workers?
-
Explain why the argument presented is not a sound economic argument for trade protection.
-
-
Step by step
Solved in 3 steps
