If there is a negative externality involved in producing good X, then
A. engaging in international trade will solve the inefficiency.
B. a subsidy to the producer of good X can correct the inefficiency involved.
C. the production possibility curve will be too steeply sloped toward good X.
D. None of these is true.
Answer: D
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At a level of output when regulators require a natural monopoly to set a price that is equal to marginal cost, the firm
A) makes zero economic profit. B) makes an economic profit. C) incurs an economic loss. D) makes a normal-economic profit. E) makes either zero economic profit or an economic profit, depending on whether the firm's average total cost equals or is less than its marginal cost.
Of the following countries, which had the highest level of GDP per capita in 2014?
A) the United States B) Italy C) France D) Japan