Which of the following is a term referring to unemployment that occurs because individuals lack skills valued by employers?

An externality occurs when

A) the costs of producing a good are paid entirely by the producer. B) some of the costs of producing a good are paid by someone other than the producer. C) the marginal social cost of an activity increases as that activity is increased. D) Both answers A and C are correct.

Johnny has allocated $30 toward coffee and tea and feels that coffee and tea are perfect substitutes. Due to differences in caffeine levels, his MRS of tea for coffee equals 2. If coffee and tea sell for the same price, Johnny will

A) spend all $30 on tea. B) spend all $30 on coffee. C) spend $20 on coffee and $10 on tea. D) be indifferent between any bundle of coffee and tea costing $30.