Figure 2-6 -In a Report Made to the U.S. Congress in 2001

question 24

Multiple Choice

Figure 2-6
-In a report made to the U.S. Congress in 2001, the National Academy of Sciences cautioned that if fuel economy encourages the production of smaller and lighter cars, "Some additional traffic fatalities would be expected." This statement suggests that

• A) U.S. auto manufacturers are more concerned about producing fuel efficient cars to compete with their Japanese and South Korean rivals than about consumer safety.
• B) there is a tradeoff between safety and fuel economy.
• C) society should value safety more highly than fuel economy.
• D) society should value fuel economy more highly than consumer safety because of the long term environment benefits generated by less gasoline use.

Analyze industrial location decisions to minimize costs and maximize operational efficiency.

Evaluate political and social risks associated with operating in different countries.

Understand the importance of strategic location clustering for businesses.

Apply center-of-gravity and other quantitative methods to location analysis.

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Definitions:

Comparative Advantage

A principle that holds that each party should produce the goods or services for which it has the lowest opportunity cost relative to others.

Trade Restriction

Measures implemented by governments to control the amount of trade across borders, including tariffs, quotas, and non-tariff barriers.

Production Relationships

The correlations between input factors and the resulting output in the production process of goods or services.

Production Possibilities Frontier

A graph showing all the possible highest production levels for two or more products, given certain inputs.