The social cost of cutting trees for firewood in a government forest is
A) the increased likelihood of flooding as more trees are cut.
B) opportunity cost to the individual of cutting the wood.
C) the increased likelihood of flooding as more trees are cut plus the private cost of cutting the trees.
D) the marginal costs of cutting the last tree.
C
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Refer to the figure above. What is the total surplus after Barylia opens up to free trade?
A) $455 B) $800 C) $1,000 D) $1,200
What do you mean by the term 'equilibrium wage'? a. It is the wage that is determined when potential employers and potential employees are free to transact as they wish. b. It is a wage determined by the government with an intention to narrow the gap between the higher and the lower income groups. c. It is a wage at which the workers refuse to offer labor
d. It is a minimum possible rate that an employer must pay in order to hire a labor. e. It is a wage at which there is an excess supply of workers.
The essential logic behind international trade is not different from that underlying trade among different states. Why, then, do we study international trade as a special subject?
All of the following statements about banks in Zimbabwe in 2009 are true except
A. The risk of losing deposits at Zimbabwe banks, even if they failed, was low because of deposit insurance. B. Political instability increased the risk of bank failures. C. Few people deposited their money into Zimbabwe banks. D. Banks were paying 100,000 percent interest on deposits.