Which of the following statements about private and social costs is TRUE?
A) Social costs include externalities.
B) Private cost do not include externalities.
C) Social costs are never smaller than private costs.
D) All of the above.
D
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One of the methods of reducing the geographical disadvantage faced by poorer countries is:
A) by moving to a socialist economic system. B) by undertaking large-scale disease eradication programs. C) by borrowing financial resources at market interest rates. D) by reducing participation in international trade.
The marginal product of a country's workers increases during summer due to the pleasant weather. Which of the following is likely to happen in this case, assuming all else equal?
A) The country's labor demand curve will shift to the left in summer. B) There will be a downward movement along the labor demand curve. C) There will be an upward movement along the labor demand curve. D) The country's labor demand curve will shift to the right in summer.
Immigration causes __________ in the capital-labor ratio and __________ in the return to capital.
a. increases; decreases b. increases; increases c. decreases; decreases d. decreases; increases
An increase in the reserve ratio, ?, will cause
A) an increase in the monetary base (H). B) a reduction in H. C) an increase in the money multiplier. D) a reduction in the money multiplier. E) none of the above