Social costs of a good are equal to
A) external costs minus private costs.
B) private costs minus external costs.
C) private costs plus external costs.
D) external costs divided by the private costs.
Answer: C
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The primary job of a bank is to act as an intermediary, taking in deposits from savers and then loaning that money to people who want to borrow
a. True b. False Indicate whether the statement is true or false
A nation with cheap, efficient communications is likely to be
a. richer, ceteris paribus, because transaction costs will be lower and trade greater. b. richer only if production of goods is cheaper, too, since trade itself cannot create value. c. poorer since it spends so much on communication instead of true productivity. d. spending too much on communications, which adds nothing to the value of output.