Refer to the accompanying figure, which shows the annual domestic supply and annual domestic demand for jeans in a small country.If the world price of a pair of jeans is $40, and this country is open to trade with the rest of the world, then it will ________ pairs of jeans each year.

Everything else held constant, increased demand for a country's ________ causes its currency to appreciate in the long run, while increased demand for ________ causes its currency to depreciate

A) imports; imports B) imports; exports C) exports; imports D) exports; exports

A difficulty with using a uniform per-unit tax to address a negative externality is that

A) the tax will reduce output. B) the tax will increase price. C) the social cost of pollution might vary across geographic regions. D) the social cost of pollution should not be assessed on the consumers, but should be assessed on the firms.