Social costs of a good are equal to
A. external costs minus private costs.
B. private costs plus external costs.
C. external costs divided by the private costs.
D. private costs minus external costs.
Answer: B
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Which of the following is an argument that is used for protection from free trade?
i. the national security argument ii. the infant-industry argument iii. the dumping argument A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
If a bottle of fine French wine costs US$250 in the U.S., 2500 rand in South Africa, there are no transaction costs, and the exchange rate is 5 rand/US$, then
A) there is an arbitrage opportunity by buying the wine in the U.S., and selling it in South Africa and the price in South Africa will drop. B) there is an arbitrage opportunity by buying the wine in South Africa., and selling it in the U.S. and the price in the U.S. will drop. C) here is an arbitrage opportunity by buying the wine in South Africa., and selling it in the U.S. and the price in the U.S. will rise. D) there is no arbitrage opportunity.
If the government of India implemented a policy that decreased national saving, its real exchange rate would
a. depreciate and Indian net exports would rise. b. depreciate and Indian net exports would fall. c. appreciate and Indian net exports would rise. d. appreciate and Indian net exports would fall.
marketing services that add "time value" include:
a) transportation b) processing c) marketing d) storage e) all of the above