One of the Difficulties in Trying to Determine the Validity

question 24

Multiple Choice

One of the difficulties in trying to determine the validity of the pollution haven hypothesis is that

• A) weaker environmental regulation and enforcement is not the only criteria for deciding where to locate a firm.
• B) globalization has made it difficult for firms to relocate from one country to another.
• C) countries may have strict environmental laws but enforcement may be lacking.
• D) companies may locate in a country with strict environmental policy but break the law.

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Definitions:

Negative Relationship

A situation or condition in which an increase in one variable leads to a decrease in another variable.

Quantity Demanded

The total amount of goods or services that consumers are willing and able to purchase at a given price over a specific time period.

Demand Curve

The demand curve is a graphical representation showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a given time period.