Consider the following information for a family. The income for the family is $58,000; if the MPC is 0.6, and income increases by $13,000, then the increase in savings for the family is:

An inframarginal positive externality _____

a. requires subsidization to reach an optimal level of output b. requires regulation to reach an optimal level of output c. requires corrective taxation to reach an optimal level of output d. requires no action because the optimal level of output has been reached

Refer to Reducing Long-Run Labor Usage. The scale effect of the wage change is the movement from point

a. X to point A.
b. X to point B.
c. B to point C.
d. C to point D.