If the supplies of capital and labour are fixed and technology is unchanging, then real output is:

In the specific factors model, which of the following will increase the quantity of labor used in food production?

A) an increase in the price of food relative to that of cloth B) an increase in the price of cloth relative to that of food C) a decrease in the price of labor D) an equal percentage decrease in the price of food and cloth E) an equal percentage increase in the price of food and cloth

When there is an external cost, the unregulated market

A) overproduces the good or service. B) underproduces the good or service. C) reaches the most efficient solution. D) minimizes public welfare.