You have decided to purchase, directly from the French manufacturer, a helicopter that costs 800,000 euros. At the equilibrium exchange rate between dollars and euros in Figure 36.1, this purchase will cost you
A. $1,600,000.
B. $800,000.
C. $200,000.
D. $400,000.
Answer: D
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The Cost-Benefit Principle predicts that a person:
A. should take an action if its cost increases. B. is more likely to take an action if its cost increases. C. is more likely to take an action if its benefit increases. D. should take an action if its benefit increases.
On what kind of income is our tax system based?
A) nominal B) adjusted C) real D) inflationary
In U.S. trade law, the ________ allows for the imposition of restrictions on fairly traded imports that cause or threaten harm to domestic industry
A) escape clause B) countervailing duty C) GATT D) fair trade law
A consequence of a negative externality is that social costs __________ private costs, and the efficient level of output __________
A) equal; does not require any type of government intervention B) are less than; requires the government to create a subsidy C) are greater than; requires the government to impose a tax D) are greater than; requires the government to create a subsidy E) are less than; requires the government to impose a tax