Suppose a permanent increase in demand for the Argentinean peso causes a chronic shortage of this currency in the foreign exchange market. The Argentinean government should then:
a. request other countries to revalue their currency.
b. devalue the peso.
c. allow the peso to appreciate.
d. restricts exports.
e. restrict imports.
c
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Suppose a nation increases the quantity of a product it exports. To attract the labor resources needed to support the increased production, it must:
a. pay higher wages. b. lay off workers. c. borrow capital abroad. d. find new sites for production near population centers.
If the marginal benefit of reducing emissions of some air pollutant is less than the marginal cost
A) economic efficiency will be increased if further reductions are made. B) pollution taxes should be imposed on producers to pay for further reductions. C) further reductions will make society better off. D) further reduction will make society worse off.