The marginal social cost is
A) equal to the marginal private cost plus the marginal external cost.
B) equal to the marginal private cost minus the marginal external cost.
C) the same as the marginal private cost.
D) the same as the marginal external cost.
A
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A consequence of increasing marginal costs of producing laptop computers in the United States is
A) the United States will not export laptop computers. B) the United States will stop short of complete specialization in the production of laptop computers. C) the United States will likely impose trade restrictions on imported laptop computers. D) the United States will import laptop computers from countries that don't experience increasing marginal costs.
The most likely explanation for the high inflation rates that countries like Russia and the Ukraine have suffered is that
A) large inflows of foreign funds increase the money supply, causing inflation. B) without inflation, these countries would be unable to achieve high rates of growth. C) borrowing from the central bank is the most expedient method of funding the government's expenditures. D) the flood of financial innovations has increased liquidity in these nations' economies.
A financial crisis brought on by volatile capital flows
A) is usually inevitable given underlying conditions. B) does not happen to countries with strong international positions. C) is often preceded by capital inflows and an increase in foreign liabilities. D) is usually the result of high budget deficits.
The fungibility of money means that
A. thinking large, one-time expenses should be paid off over a period of time, while everyday expenses should come out of your checking account, is irrational. B. people often create false distinctions between categories of debt. C. the categories people create to organize their expenditures are meaningless in financial terms. D. All of these statements are true.