When a negative externality is present in a market, total surplus is:
A. lower when buyers only consider private costs.
B. lower when buyers consider social costs.
C. higher when buyers only consider private costs.
D. None of these statements is true.
Answer: A
Economics
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The investment demand curve will shift to the right as a result of a(n):
a. Decrease in the acquisition and maintenance cost of capital goods b. Increase in the excess productive capacity available in the industry c. Increase in taxes businesses pay to government d. Decrease in the confidence of business leaders about the economy
Economics