Refer to the above figures. An external cost exists. This will lead to a(n)
A) underproduction equal to Q1 minus Q2.
B) overproduction equal to Q4 minus Q3.
C) underproduction equal to Q4 minus Q3.
D) overproduction equal to Q1 minus Q2.
D
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A country produces only cans of soup and ink pens. If the country produces on its bowed outward PPF and increases the production of cans of soup, the opportunity cost of additional
A) cans of soup is decreasing. B) ink pens is increasing. C) cans of soup is increasing. D) cans of soup remains unchanged. E) More information is needed to determine what happens to the opportunity cost.
One of the components of the human development index is
a. the percentage of the population who are high school graduates. b. the average daily intake of protein. c. life expectancy at birth. d. the number of doctors per hundred people in the population.