Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,

Economic growth caused by increased employment creates a trade-off between income and

a. present-day living standards b. research and development expenditures c. investment in physical capital d. future living standards e. leisure time

(Consider This) According to the Coase theorem:

A. government should levy excise taxes on firms that generate spillover or external costs. B. taxes should be levied such that they change private behavior as little as possible. C. private individuals can often negotiate their own resolution of externality problems, without the need for government intervention. D. private firms should not provide public goods.