What does it mean for a producer to internalize an externality?
A) The producer is limiting outsourced production.
B) The producer is prohibited from producing products which generate externalities.
C) The producer must find ways to address externality problems which extend beyond geographic borders.
D) The producer is forced to factor into production costs the cost of the externalities created in their production of output.
D
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In the long run, potential growth in the economy and a rise in real GDP per capita might occur from all of the following except _____.
(A) An increase in savings. (B) An achievement in technological progress. (C) An increase in government spending on public goods. (D) Growth in population.
The gross domestic product of Solvasa, a small island country, is U.S. $68 billion. The adult population of the country is 8.70 million and 11.3 million citizens are below 18 years of age. The output per capita of Solvasa is approximately equal to _____
a. $7,800 b. $3,400 c. $6,017 d. $5,201 e. $6,950