The way in which a country benefits from trade is that it can
a. obtain goods at lower opportunity cost than producing them itself.
b. exploit economies of scale in production and lower the cost of goods it produces.
c. obtain a wider range of goods than it can produce for itself.
d. All of the above are benefits.
d
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If a company pays a dividend of $2 to be received one year from now, dividends are expected to grow at a rate of 3 percent per year for the indefinite future, and the interest rate is 4 percent, the price of the company's stock should be ________ per
share. A) $3.40 B) $28.57 C) $200.00 D) $340.00
Your neighbor likes to blast 1970's rock music and the louder the better. The loud music imposes a cost on you because it disrupts your study of economics. Let D stand for the volume of his music in decibels, B for his benefits and C for your costs, where B and C are measured in dollars. For any given volume, D, your neighbor's benefit is B = 0.63D - 0.002D2 and your cost is C = 0.06D + 0.001D2. With an efficient Pigouvian tax, how much will your neighbor pay in noise taxes?
A. $22.50 B. $23.75 C. $28.75 D. $71.25