Microprudential supervision focuses on the safety and soundness of

Suppose the United States exports cars to France and imports cheese from Switzerland. This situation suggests that

a. the United States has a comparative advantage relative to Switzerland in producing cheese, and France has a comparative advantage relative to the United States in producing cars. b. the United States has a comparative advantage relative to France in producing cars, and Switzerland has a comparative advantage relative to the United States in producing cheese. c. the United States has an absolute advantage relative to Switzerland in producing cheese, and France has an absolute advantage relative to the United States in producing cars. d. the United States has an absolute advantage relative to France in producing cars, and Switzerland has an absolute advantage relative to the United States in producing cheese.

One way of addressing the associated market failure that generates both private costs and external costs is for this activity to be

A) left alone. B) taxed. C) subsidized. D) banned.