It Is Increasingly Difficult for a Firm to Develop and Sustain

question 42

Multiple Choice

It is increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects of globalization and

• A) the rapid development of the Internet's capabilities.
• B) extensive use of outsourcing within the borders of the U.S.
• C) the declining number of inventions and patents developed by U.S. citizens.
• D) the simultaneous erosion of the U.S. work ethic and the U.S. education system.

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Definitions:

Distorting Taxes

Taxes that alter the allocation of resources and change consumer or producer behavior, leading away from an efficient market outcome.

Excess Burdens

Refers to the additional costs or losses to society beyond the direct financial effects, caused by inefficiencies or distortions in market transactions.

Benefits-Received Principle

A theory of taxation wherein individuals pay taxes in proportion to the benefits they receive from government services.

Camping Fee

A charge for the privilege of accessing and using facilities or spaces designated for camping.