-The Figure Above Shows the Market for a Good with an External

question 140

Multiple Choice

-The figure above shows the market for a good with an external benefit.If the government wants to grant a subsidy so that the efficient quantity is produced,the subsidy must equal ________ per unit.

• A) $100
• B) $150
• C) $250
• D) $300
• E) $50

---

Definitions:

Forward Rate

Refers to the agreed exchange rate for a currency transaction that will occur at a future date.

Exchange Gain

A profit resulting from holding foreign currencies that appreciate against the home currency.

Financial Statements

Official records of the financial activities and position of a business, person, or other entity, presented in a structured manner.

Spot Rate

The current price in the foreign exchange market at which a currency can be bought or sold for immediate delivery.