Suppose the production possibilities for two countries, producing either food or clothing, are shown in the above figure. They can each produce any linear combination as well

A meditation class meets on the second floor of a building; the first floor is a nightclub. The loud music from the club disturbs the classes. Which of the following best explains why the negative externality faced by the class arises?

a. The class has no property right to a quiet environment. b. The club has a property right on the ground floor. c. The class has a property right on the second floor. d. The club uses an inappropriate technology (i.e., no soundproofing). e. Both the club and class are profitable.

A movement downward and to the left along a supply curve is called a(n)

a. increase in supply. b. decrease in supply. c. decrease in quantity supplied. d. increase in quantity supplied.