The money the North Korean government spent to purchase a closed British brewery was a(n) ________ cost, and the choice to brew beer in this brewery instead of using the resources to feed the people of North Korea is a(n) ________ cost
A) explicit; explicit
B) explicit; implicit
C) implicit; implicit
D) implicit; explicit
B
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National saving minus private saving is equal to
A) the government surplus. B) private disposable income. C) the current account deficit. D) interest on the government debt.
Can the U.S. dollar and the European euro both appreciate relative to each other?
a. Yes, both countries can gain in this manner. b. Yes, provided the central banks permit it. c. No, unless there is a system of fixed exchange rates. d. No, if one currency appreciates, the other must depreciate.
The argument that with initial protection an industry will eventually become competitive is called the
A) national security argument. B) strategic bargaining argument. C) the trade adjustment assistance argument. D) infant industry argument.
As a last resort the federal government may provide direct income support to farmers. One potential advantage of direct income supports is that they
A. Raise market prices. B. Provide income security without distorting market prices and output. C. Increase market output. D. Reduce consumption.