An increase in income in other countries, other things equal, ...

[CBme]

An increase in income in other countries, other things equal, would cause U.S. _____.
 a. exports to decrease and imports to increase
 b. exports to increase and imports to increase
 c. imports to decrease and exports to decrease
 d. imports to increase and exports to remain unchanged
  e. imports to remain unchanged and exports to increase

Question 2

In order to achieve social efficiency, the size of an effluent tax should be based on:
 a. the external cost created by the pollutant.
  b. people's willingness to pay for a cleaner environment.
  c. the expense of installing new green equipment.
  d. the number of free riders in the industry.

[diana chang]

Answer to Question 1

e

Answer to Question 2

a

[CBme]

Thank you

[diana chang]

No problemo