Which of the Following Is Not True of Declining Industries

question 48

Multiple Choice

Which of the following is not true of declining industries?

• A)Job loss is not a problem in a declining industry because the workers can easily find jobs in expanding industries.
• B)Jobs may be lost by declining industries but new jobs are created in expanding industries.
• C)Over 60 million new jobs have been created in the United States since 1960.
• D)One way to solve the problems posed by declining industries is for the government to fund programs to retrain workers for jobs that are in greater demand.
• E)One way to solve the problems posed by declining industries is for the government to offer wage subsidies or special tax breaks that decline over time.

Understand the concept of excludability and rivalry in goods.

Differentiate between public goods, private goods, club goods, and common resources.

Recognize the free-rider problem and its implications for market efficiency.

Understand the role of government intervention in providing public goods and mitigating externalities.

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Definitions:

Compensation

The total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed.

Licenses

Official permissions or permits to do, use, or own something.

Pollution

The introduction of harmful substances or products into the environment, causing adverse effects on living organisms and ecosystems.

Tradable Emissions Permit

A market-based mechanism that provides economic incentives for achieving reductions in the emissions of pollutants, allowing companies to buy or sell emission rights.