The fact that positive externalities may exist in education is not enough to justify government involvement. To justify government involvement, it must be shown that _____

If the U.S. dollar depreciates, then U.S. exports become ____ expensive to foreigners and foreign goods become ____ expensive to U.S. citizens

a. less; less b. less; more c. more; less d. more; more

Economists refer to externalities as an example of market failure when:

a. markets do not consider social costs as part of overall costs. b. additional external costs are so high that the firm must shut down. c. private costs are the same as costs to society as a whole. d. citizens bring lawsuits to stop production that pollutes.