Which of the following would increase net exports in the United States?
A) The United States purchases 500 silver necklaces from Mexico.
B) A Mexican citizen purchases 25 shares of stock in Ford Motor Company.
C) The U.S. government donates $5 million to Mexico to help victims of drought in Mexico.
D) The government of Mexico purchases 500 Ford F-150 pickup trucks from the United States.
D
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When nations attempt to move quickly from central planning to a market system, they face the obstacle of high transaction costs in large part because
A) market systems are unnatural and require careful design. B) people who have lived under socialism lack the basic skills a market system requires. C) people who have long lived under socialism are not sufficiently individualistic. D) the experience of socialism makes people distrustful of one another. E) they lack many of the institutions that develop over time in a market system.
A firm's total cost of production is
a. the owners' opportunity cost b. labor costs plus the cost of materials c. the payments for its inputs d. depreciation plus payments for inputs e. taxes plus depreciation plus payments for inputs