In the two-gap model, which of the following gaps, when binding, leads to foreign aid having the largest impact on GNP?

(a) Fiscal gap.
(b) Savings gap.
(c) Foreign exchange gap.
(d) None of the above.

C

Economics

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Congressman Murphy made the following proposal: "We should establish policies that completely eliminate air pollution. This is the only way to ensure that none of our citizens suffer the negative effects of air pollution"

If Congressman Murphy's proposal was adopted and all forms of air pollution were eliminated, which of the following would be true? A) The total cost of pollution reductions would equal the total benefit to society. B) The marginal cost from pollution reductions would exceed the marginal benefit. C) The total benefit to society from reductions in air pollution would be maximized. D) Economic efficiency would be maximized

Economics

In order to avoid the misappropriation of company-owned financial investments, which of the following is the best course of action that can be taken by the management of a company with a large portfolio of financial investments?

A) Require that employees who enter and leave the safekeeping area sign and record in a log the exact reason for their access. B) Require that one trustworthy and bonded employee be responsible for access to the safekeeping area where securities are kept. C) Require that employees involved in the safekeeping function maintain a subsidiary control ledger for securities on a current basis. D) Require that the safekeeping function for securities be assigned to a securities broker who will act as a custodial agent.

Economics