When Alaska Passed a Law in the 1970s That Gave

question 38

Multiple Choice

When Alaska passed a law in the 1970s that gave state residents preference over nonresidents in obtaining work on oil pipelines,this law violated the ________ clause.

• A)interstate commerce
• B)full faith and credit
• C)privileges and immunities
• D)necessary and proper

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Definitions:

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces.

Profit-maximizing Output

The level of production at which a firm achieves the highest profit, where marginal revenue equals marginal cost.

Marginal Cost

The expenditure required to produce an extra unit of a good or service.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced.