Which of the following represents the marginal cost of a soda? I. The opportunity cost of producing another soda. II. The minimum price someone is willing to pay for another soda

Sophisticated theoretical arguments supporting import-substitution policies include

A) terms of trade effects. B) scale economy arguments. C) learning curve considerations. D) the problem of appropriability. E) domestic market failure arguments.

AIG almost went bankrupt in 2008 because

A) the value of the securities underlying its credit default swaps declined significantly. B) it lacked the collateral required by buyers of its credit default swaps. C) prices of securities underlying their credit default swaps were hard to determine since they were no longer actively traded. D) all of the above.