The supply of loanable funds comes, in part, from

A paint firm has just announced that it will be building a new plant in a small town that is currently experiencing a high level of unemployment. The new plant will create 500 new jobs in the area and will occupy unused land at the edge of town. The

plant will also dump some harmful chemicals into the town's river. From an economic standpoint this dumping of chemicals A) is unimportant since the firm is reducing the unemployment in the region. B) creates a negative externality. C) is the production of a public good. D) creates a positive externality.

The retirement poverty problem is that

A. retirement makes people feel poorer because they are not engaged in productive work. B. without Social Security payments, almost all seniors would be in poverty. C. many workers are too poor to save for retirement. D. many retired people live in poverty.