Question

1. Jobs that move from Indiana to some parts of India are a recognition of the fact that the opportunity cost of capital is high for firms that choose to move some elements of their operations to less costly work environments. True or False?

2. Name at least three benefits of having healthcare as a public good for citizens in the U.S.

3. Exports that are subsidized and sold cheaply as imports may damage the economic health of producers of similar goods in the imported market. True or False?

4. It's generally true that if I'm paying out of pocket for my medical costs I would much rather prefer a price floor because prices will be below market. True or False?

Answer 1

Ques 1 ) True

The opportunity cost, i.e. the cost of jobs in Indiana was higher than the cost in India. Thus, the opportunity was high and so the firms chose to move to a lower cost area.

Ques 2 ) 3 benefits of having healthcare as a public good for citizens in the U.S :

1. It will be in public interest and promote well being of all the citizens which will thereby ensure they reach their potential.

2. It will ensure that each citizen, irrespective of their earning capacity gets treatment

3. Further, it will help in tackling and coping with transmittable diseases and further creating herd immunity like the coronavirus.

Ques 3 ) TRUE

When the consumers in a country have imported goods which may be technologically advanced than home country products, and are available at a competitive price as the producers are able to set a low price due to low cost of production as a result of the subsidies. The indigenous producers might feel the heat in their economic conditions in this case.

Ques 4 ) FALSE

The individuals would seek a ceiling price, i.e. over which rate the market cannot charge the customer.