If a country voluntarily agrees to have its companies import more goods from another country, the country has

Air pollution is an external cost because it

A) is a pollution of the external environment. B) is a cost not borne by the producer of the good. C) benefits no one. D) is not associated with resource use. E) is created only when production occurs.

In the above figure, suppose that the government sets a limit that may be produced of 10 units of output and the price rises to $4. The total deadweight loss would be

A) $0. B) $10. C) $15. D) $20.