A political function of government is to
A) encourage the consumption of government-sponsored goods.
B) provide public goods.
C) correct for externalities.
D) encourage the workings of the price system.
A
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Firms in Thailand that had borrowed dollars while the baht was pegged to the dollar faced interest payments that were ________ than they had planned because the baht had been pegged ________ the equilibrium exchange rate for the baht
A) higher; below B) lower; below C) lower; above D) higher; above
Economic costs of production differ from accounting costs in that
A) economic costs include expenditures for hired resources while accounting costs do not. B) accounting costs are always larger than economic cost. C) accounting costs include expenditures for hired resources while economic costs do not. D) economic costs add the opportunity costs of a firm using its own resources while accounting costs do not.