Mini-quiz 1

An increase in social costs and a reduction in negative externalities

An increase in private costs and a reduction in negative externalities

An increase in both social costs and negative externalities

An increase in both private costs and negative externalities

To help poorer countries with their economic development

To maintain international financial stability in global financial markets

To settle industrial and trade disputes between members

To implement and advance global trade agreements

South Africa

Saudi Arabia

Indonesia

None of the above

A tariff always generates tax revenues to the government while a quota does not

A tariff affects the domestic price of a commodity while a quota does not

A tariff disadvantages consumers while a quota does not

A tariff encourages increased domestic production, while a quota does not

Adam has an absolute advantage in both activities

Eve has a comparative advantage in paint stripping

For Adam, the opportunity cost of stripping the paint from 1 metre of railings is painting 4 metres of railings

For Eve, the opportunity cost of painting 1 metre of railings is stripping 2 metres of railings

Boiler-Room scam

Ponzi scam

Pump and Dump scam

Pascal scam

Count in both this year's and next year's GDP.

Are not counted as a part of GDP.

Count in this year's GDP.

Count in next year's GDP.

The bankrupt cannot leave the country without permission from the Official Assignee

The bankrupt cannot incur credit exceeding $500 without disclosing his bankruptcy

The bankrupt cannot be a director of a company under all circumstances

There is no automatic discharge from bankruptcy

Long-term investors

Short-term investors

High-risk takers

Low-risk takers

Investment

Funding for children’s education

Buying a house

Buying medical insurance