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Economics

In general, int’l trade is –more difficult to conduct than domestic trade The principal of increasing marginal opportunity costs states that initial opp. Costs are – low – and they – increase – the more you concentrate on the activity Assuming gov’ts goal is to benefit society as much as possible, -- actions w/ negative externalities should be restricted and actions w/ positive ex. Should be encouraged When gov’t attempts to adjust for the effect of decisions by third parties not taken into acct by decision makers, the gov’t is attempting to – correct for externalities. Addictive drugs would be example of – demerit goods or activities The economic policy for leaving coordination if individual’s actions to the market is called – lai

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