Simi Lives in the Trading Bloc That Accounts for the Most

question 18

Multiple Choice

Simi lives in the trading bloc that accounts for the most economic activity worldwide.In which nation is she likely to live?

• A) either Canada, the United States or Mexico
• B) either Japan or China
• C) either Germany or France
• D) either Australia or New Zealand

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Definitions:

Government Activities

Actions and operations conducted by the government including lawmaking, regulation, and public services.

Externality Rights

The rights pertaining to external effects of transactions, that affect third parties not directly involved in the economic transaction.

Government Imposed Taxes

Charges levied by the government on individuals, goods, services, or transactions to fund public expenditures.

Marginal Social Cost

The total cost to society of producing an additional unit of a product, including both the private cost and any external costs.