Refer to Figure 7.1. Angus values playing the bagpipes at

Which of the following is most likely to increase the natural rate of unemployment?

a. An increase in the age of the working population b. A shift from service to manufacturing jobs c. An increase in the minimum wage rate d. A reduction in social security benefits e. A reduction in direct taxes

The presence of negative externalities leads to a misallocation of societal resources because: a. whenever external costs are imposed on outside parties, the good should not be produced at all

b. less of the good than is ideal for society is produced. c. there are some costs associated with production that the producer fails to take into consideration. d. the government always intervenes in markets when negative externalities are present, and the government is inherently inefficient.