Laws and government actions designed to prevent monopoly and to promote competition are the focus of:

In the ________________ of externalities, the market equilibrium is ______________ efficient because it maximizes the net social benefit.

a. absence; ecologically b. presence; ecologically c. absence; economically d. presence; economically e. absence; environmentally

If the United States has a net export deficit, which of the following must be true? (Assume that the capital account is zero and net transfers are zero.)

A) Net foreign investment must be negative as well. B) Domestic private saving must be less than net foreign investment. C) Domestic public saving must be less than net foreign investment. D) The balance on the financial account must equal the balance on the current account.