If the production of a good creates pollution, then the
A) marginal social benefit curve lies above the marginal private benefit curve.
B) marginal social cost curve lies above the marginal private cost curve.
C) marginal social benefit curve lies below the marginal private benefit curve.
D) marginal social cost curve lies below the marginal private cost curve.
B
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The flow of private foreign investment and grants and loans is included in a country's
(a) current account. (b) capital account. (c) cash account. (d) none of the above.
An increase in the interest rate leads to:
a. an increase in planned inventories. b. an increase in GDP. c. an increase in unplanned inventories. d. an increase in consumption. e. none of the above.
When both exports and imports are considered, the major advantage of international trade is that it allows us to:
a. sample foreign products that many of us would otherwise never see. b. consume a larger, more diverse quantity of goods and services at lower prices than would otherwise prevail. c. share our technology and efficiency with less-developed countries that would otherwise never have the opportunity to observe modern goods and services. d. maintain jobs for workers who would otherwise have little to do.
In the equation of exchange, "Q" stands for
A) the interest rate. B) quality. C) GDP. D) Real GDP.