If the demand for a good increases because consumer income increases, the good is a(n):

Which of the following would be included in aggregate demand?

a) government's tax collections b) the quantity of services that firms sell c) firms' purchases of newly produced machinery d) the quantity of goods that firms produce

Suppose the firms in the chemical industry are allowed, free of charge, to dump harmful products into rivers. How will the price and output of the chemical products in a competitive market compare with their values under conditions of ideal economic efficiency?

a. The price would be too low, and the output would be too large. b. The price would be too high, and the output would be too large. c. The price would be too low, and the output would be too small. d. The price would be too high, and the output would be too small.