Some Governments Implement Systems of _______________ Specifying a Higher Exchange

question 138

Essay

Some governments implement systems of _______________ specifying a higher exchange rate on the importation of certain goods or imports from certain countries.

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Definitions:

Positive Externalities

These are benefits that a transaction or activity provides to those not involved in the transaction or activity.

Negative Externalities

Costs suffered by a third party as a result of an economic transaction that they were not directly involved in.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, typically resulting from increased production where the cost per unit of output drops as scale increases.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available to all and one person's use does not diminish another's.