Consider two goods-one that generates external benefits and another that generates external costs. A competitive market economy would tend to produce:
a. too much of both goods, relative to the social optimum
b. too little of both goods, relative to the social optimum.
c. too much of the good that generates external benefits relative to the social optimum, and too little of the good that generates external costs.
d. too little of the good that generates external benefits relative to the social optimum, and too much of the good that generates external costs.
d
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The difference in economic growth in North Korea and South Korea can be primarily attributed to differences in ________
A) the proximate causes of prosperity B) geography C) culture D) institutions
Which of the following is likely to shift the demand curve for engineers rightward, assuming all else equal?
A) An increase in the wage rate paid to engineers B) A decrease in the wage rate paid to engineers C) An increase in the productivity of engineers D) A decrease in the price of all products manufactured by engineers