The figure above represents the competitive market for slices of key lime pie. When the price is $3, the total producer surplus equals

A) $0.
B) $60.
C) $90.
D) $120.
E) None of the above answers is correct.

C

Economics

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Traffic congestion is an example of a negative externality because

A) motorists take into account all benefits while driving. B) motorists take into account all costs while driving. C) a motorist's cost of driving spills over and affects other motorists. D) a motorist's benefit from driving spills over and affects other motorists.

Economics

According to the Solow model, which type of government spending is more likely to raise the long-term growth rate of output per person, spending on infrastructure or spending on research and development?

What will be an ideal response?

Economics