International financial investors are moving funds from Talona to other countries. This depreciation is
causing even more disenchantment with this Talona’s currency. Describe the affects will this have on the
supply and demand curves for this currency on the foreign exchange markets?67. Using a supply and demand
diagram, demonstrate how a negative externality leads to market inefficiency. How might the government help
to eliminate this inefficiency?68. Briefly discuss the shortcomings of environmental command-and-control
regulations.69. Some data that at first might seem puzzling: The share of GDP devoted to investment was
similar for the United States and South Korea from 1960-1991. However, during these same years South
Korea had a 6 percent growth rate of average annual income per person, while the United States had only a 2
percent growth rate. If the saving rates were the same, why were the growth rates so different?
70. “Block Imports—Save Jobs for Some Americans, Lose a Roughly Equal Number of Jobs for Other
Americans, and Also Pay High Prices.” Discuss this statement within the context of protectionism.71. Steve
and Craig have been shipwrecked on a deserted island in the South Pacific. Their economic activity consists of
either gathering pineapples or fishing. We know Steve can catch four fish in one hour or harvest two baskets of
pineapples. In the same time Craig can reel in two fish or harvest two baskets of pineapples. Assume Craig
and Steve both operate on straight-line production possibilities curves. What is Steve’s opportunity cost of
producing a basket of pineapples? Of a producing a fish? What is Craig’s opportunity cost of producing a
basket of pineapples? Of a producing a fish?72. Provide examples of market-oriented environmental policies