If an economy's consumption spending is $5 trillion, investment is $2 trillion, government spending is $1 trillion, net taxes are $1 trillion and household saving is $2 trillion, total income is

For a good with an external cost, the supply curve

A) represents the various quantities people can buy. B) is the same as the marginal private cost curve. C) is the same as the marginal social cost curve. D) is the same as the marginal external cost curve.

If a market is perfectly competitive and is in long-run equilibrium, which of the following conditions does not hold?

A) Price is equal to the minimum long-run average cost of production. B) Economic profit equals zero. C) The value of the last unit of output produced is equal to the value of the resources used to produce it. D) There is an incentive for additional firms to enter the market because existing firms are earning revenues in excess of the explicit costs of production.