If the price elasticity of supply is 1, supply is:

If a government action is designed to achieve efficiency, then the action must have the market produce the amount of output so that the

A) marginal private cost equals the marginal private benefit. B) marginal social cost equals the marginal social benefit. C) marginal external cost equals the marginal external benefit. D) marginal private cost equals the tax. E) marginal social benefit exceeds the marginal social cost by as much as possible.

Nondeliverable forward exchange markets in centers such as Hong Kong and Singapore help to circumvent which problem?

A) loss of goods shipped from Hong Kong and Singapore B) inconvertible currencies cannot be traded in foreign markets C) lag between the spot exchange date and the value date D) high travel costs from Asia to "traditional" foreign exchange markets E) unstable currencies that hold no purchasing power