An example of a situation in which the social costs are greater than the private costs would be
A. a physician who cannot examine patients with a stethoscope in an examination room adjacent to an airport.
B. a new restaurant takes business away from an established restaurant.
C. hand-held calculators putting slide rule manufacturers out of business.
D. when a member of a rock band's ability to hear deteriorates from performing in so many loud concerts.
Answer: A
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If the current account balance is -$450 billion, the capital and financial account balance is $440 billion, then the official settlements balance is
A) $890 billion. B) $0 because it is always zero. C) $10 billion. D) -$890 billion. E) -$10 billion.
In recent decades the United States has incurred overall balance of payments deficits
Indicate whether the statement is true or false
Politicians and citizens may often choose policies that reduce economic efficiency because they are perceived as "fairer."
a. True b. False Indicate whether the statement is true or false
Suppose a U.S. government program subsidizes the production of domestic sugar producers and places a tariff (tax) on the importation of sugar from other countries. This program
A) helps the producers of sugar, but increase the opportunity cost of obtaining it. B) will reduce the opportunity cost of obtaining sugar and therefore lead to lower sugar prices. C) creates wealth, because the government is providing the subsidies and imposing the tariffs. D) promotes the production of goods that consumers value highly relative to cost.