What word do economists use to refer to the purchase of goods that will be used in the future to produce more goods and services?

The elasticity of supply does NOT depend on

A) resource substitution possibilities. B) the fraction of income spent on the product. C) the time elapsed since the price change. D) none of the above because all of the factors listed affect the elasticity of supply.

A result of a positive externality in the production of a good is that

A) the price system will over-allocate resources to the production of that good or service. B) the price system will under-allocate resources to the production of that good or service. C) the market supply will be too high. D) the market demand will be too high.