"Cost disease" refers to the tendency for high productivity in the service sector to lead to lower costs in those industries

Which of the following statements is true?

A) Black markets for currency are more likely to occur in countries with undervalued currencies than with overvalued currencies. B) Black markets for currency are more likely to occur in countries with convertible currencies than with non-convertible currencies. C) Black markets for currency are more likely to occur in countries with overvalued currencies than with undervalued currencies. D) Black markets for currency are equally likely to occur in countries with undervalued currencies or with overvalued currencies.

Which of the following methods could be used to correct for external costs?

A) Impose a tax or an effluent fee on the offenders. B) Have the offender clean up the pollution it caused. C) Require firms in the industry to install pollution control devices. D) All of the above would be appropriate.