Costa Rica runs a trade deficit with its trading partner, the United States. This means that Costa Ricans buy more goods from U.S. suppliers than Americans purchase from Costa Rican suppliers. The U.S. government and some major U.S. corporations buy empty bottles from the Costa Rican government that are filled with the “purer” air of the Costa Rican rainforests. One explanation for this seemingly odd behavior is that it reduces the trade deficit. At least a portion of the revenues received for bottled air is dedicated to providing small incentives for private landholders in Costa Rica to pursue environmentally friendly land management. Do you think this is an economically efficient way to provide support to Costa Rica, or do you think that giving foreign-aid grants

(targeted to environmental protection if desired) is preferable? Explain your answer. Why do you think that empty bottles of air are bought and sold in the marketplace?