The Problem with Kidney Sales and Exporting Pollution to Poor

question 103

Multiple Choice

The problem with kidney sales and exporting pollution to poor countries is not trade, per se, but the:

• A) demand and supply making the trade happen.
• B) poverty and inequality making the trade happen.
• C) surplus and shortage making the trade happen.
• D) market making the trade happen.

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Definitions:

Long-run Equilibrium

A state in which all factors of production and costs are variable, leading to a situation where economic profits have been normalized or eliminated due to competition.

Constant Costs

Costs that do not change with the level of output or activity within a certain range.

Short-run Supply Curve

A graphical representation showing the relation between the price of a product and the quantity of the product that a firm is willing and able to sell, given fixed resources.

MC Curve

A graph that shows the relationship between the marginal cost and the quantity of output produced, typically upward sloping.