Grid Tool Company Makes and Sells Tools

question 38

Multiple Choice

Grid Tool Company makes and sells tools. One of the tools is believed to be haz?ardous. The appropriate government agency may require Grid to

• A) export the tool and sell it only abroad.
• B) increase the price to cover the cost of any injuries or damage.
• C) reduce the price to indicate the hazard to consumers.
• D) remove the tool from the market.

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Definitions:

Negotiates

The process by which parties come together to discuss, bargain, and reach a mutually acceptable agreement.

Wage Differentials

The variations in wage rates due to factors like occupation, location, industry, and individual skills and experience.

Discriminatory Bias

Prejudice resulting in unfair treatment of individuals or groups based on characteristics such as race, gender, or age.

Productivity

The efficiency with which input resources are converted into outputs, often measured as the amount of output per unit of input.