An increase in labor supply will increase the equilibrium wage rate

Technological innovations will cause:

a. the production possibilities curve to stay the same. b. the production possibilities curve to shift to the left. c. the production possibilities curve to shift to the right. d. an economy to operate below its production possibilities curve. e. the production possibilities curve to increase or decrease.

In order to internalize the externality due to pollution, the government should impose a tax based on

A) the economic damage associated with the pollution. B) the physical amount of pollution. C) the size of the firm causing the pollution. D) the value of the pollution-causing business activity.