In the Presence of No Externalities

question 27

Multiple Choice

In the presence of no externalities,

• A) social marginal cost exceeds private marginal cost.
• B) social marginal cost is less than private marginal cost.
• C) social marginal cost equals private marginal cost.
• D) social marginal cost and private marginal cost cannot be compared.

Identify the elements included in the current account of a nation's balance of payments.

Analyze the impact of foreign exchange rates on international trade.

Understand the relationship between trade deficits/surpluses and national welfare.

Comprehend the basics of the foreign exchange market and exchange rate mechanisms.

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Definitions:

Normative-sequential

A developmental concept indicating that certain behaviors and milestones tend to occur in a specific, predictable order as individuals age.

Social Clock

The culturally preferred timing of major life events, such as marriage, parenthood, and retirement.

Past Generations

Referring to the people who lived before the current generation, often used in discussions about family heritage, history, or genetics.

Social Clock

The societal expectations that dictate the appropriate timing for major life events, such as marriage, parenthood, and retirement.