Author Question: In this era of globalization, one of the main reasons why some countries have remained closed to the ... (Read 77 times)

hubes95 · **on:** Jun 30, 2018

In this era of globalization, one of the main reasons why some countries have remained closed to the rest of the world is:
a. the fact that their governments follow policies that explicitly work against economic integration.
b. racial discrimination.
c. the fact that their governments impose extremely high mortgage taxes.
d. the establishment of minimum wages.
e. the fact that they are too poor to trade anything with the rest of the world.

Question 2

The presence of negative externalities leads to a misallocation of societal resources because:
a. whenever external costs are imposed on outside parties, the good should not be produced at all.
b. less of the good than is ideal for society is produced.
c. there are some costs associated with production that the producer fails to take into consideration.
d. the government always intervenes in markets when negative externalities are present, and the government is inherently inefficient.