Consider a setting in which there is a negative externality, but no positive externality. The market outcome is __________________; government can bring about the ___________________ outcome if it sets a tax equal to the __________________

Which of the following provides the clearest example of human capital?

A) Automated equipment that can be used without any accompanying human labor B) Corporate stock owned by individuals and families rather than institutions such as mutual funds or corporations C) Machinery that has been designed and constructed by human beings D) Tools that cannot be used effectively except in combination with workers E) The ability to read

The optimal level of pollution occurs where the marginal social benefit is equal to

a. marginal private cost, which equals marginal social cost plus marginal external cost b. marginal social cost, which equals marginal private cost plus marginal external cost c. marginal external cost, which equals marginal private cost plus marginal social cost d. marginal private cost, which equals marginal social cost plus marginal internal cost e. marginal social cost, which equals marginal private cost plus marginal internal cost