The Fact That the Life Expectancy of a US Business

question 165

Multiple Choice

The fact that the life expectancy of a US business is rather short-just 10.2 years-is a reflection of the consequences of

• A) competition and creative destruction.
• B) producer and consumer surplus.
• C) productive and allocative efficiency.
• D) short-run and long-run equilibrium.

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Definitions:

Toys

Products designed for play, entertainment, or educational purposes, often targeted at children.

Pauper Labor Fallacy

The incorrect belief that importing goods from countries with lower wage levels hurts the economy of a country with higher wage levels.

Sweatshop Labor Fallacy

The misconception that sweatshop labor is entirely harmful and provides no benefit to workers in developing countries.

Heckscher-Ohlin Theory

An economic theory that suggests countries export what they can most efficiently and abundantly produce.