The following situation is an example of an import substitution strategy. Costa Rica has a comparative advantage in the production of coffee and, as a result, the Costa Rican government grants incentives to coffee planters to improve their performance in the international marketplace.
Answer the following statement true (T) or false (F)
False
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Which of the following represents the true economic cost of production when firms produce goods that generate negative externalities?
A) the private cost of production B) the external cost of production C) the social cost of production D) the explicit cost of production
Flexible, or floating, exchange rate is determined by the:
a. World Bank. b. forces of supply and demand. c. price of gold. d. Federal Reserve.
Variations in the standard of living across countries is due almost entirely to differences in each nation's total output of goods and services
a. True b. False Indicate whether the statement is true or false
Which of the following is an example of a positive statement?
A. Ceteris paribus, a teacher should award a higher grade if you study more hours for an economics test. B. When the price of an item increases, people respond by reducing their consumption of the item. C. The government should balance the budget. D. It is too hot to go jogging.