The productivity slowdown in the U.S. can be explained by geographic limitations and instability in the government

If a good is produced by firms that generate external costs, the price consumers pay

A) will be efficient as long as it equals the marginal costs of the firms. B) will be too low. C) will be too high because the consumers end up paying the costs instead of the firm. D) will be the correct price, but the quantity sold of the good will be too large.

A sound legal system that protects individuals and their property,

a. cannot be expected until markets are already working well. b. is vital to the smooth operation of markets. c. is normally found in most economies of the world. d. is helpful for the rich, but harmful to the economic well-being of others.