Families receive income from two primary sources:

Refer to Figure 11-3. Technological change is shown in the figure above by the movement from

A) B to E. B) B to A. C) B to C. D) B to D.

When a positive externality exists, _______________________ and thus _______________ intervention may be needed to achieve efficiency.

A. external costs are necessarily greater than private costs; government B. social costs equal private costs; no government C. social costs are less than private costs; government D. social costs are greater than private costs; government E. none of the above