Paul Romer Speaks About the Significance of "Charter Cities

question 40

Multiple Choice

Paul Romer speaks about the significance of "charter cities." What are these?

• A)They are cities that have a contract with their host government to provide raw materials and labor for export and economic expansion.
• B)They are cities that are focused on specific types of "theme" production,such as textile production,mineral excavation,or micro-chip technologies.
• C)They are cities within nation-states that are administered by outside (and wealthier)nations under a separate set of rules than those of the host countries.
• D)They are cities that are administered by a United Nations agency that works to create profitable jobs and social security for all needy members of the society.
• E)They are cities that have a separate constitution that allows them to operate under laws that usually conflict with the host country.

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Definitions:

Perfect Price Discrimination

Occurs when a firm charges the maximum amount that buyers are willing to pay for each unit.

Consumer Surplus

The contrast between the summed value consumers intend and can afford to pay for a product or service and the actual cost they bear.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved or is unattainable.

Federal Trade Commission

A US government agency whose primary purpose is to enforce civil antitrust law and promote consumer protection.