If the social cost of producing a good exceeds the private cost,
A) a negative externality exists.
B) no externalities exist.
C) a positive externality exists.
D) the market is efficient.
A
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Once a country has a comparative advantage in producing a product, it cannot lose that advantage
Indicate whether the statement is true or false
Steak and chicken are substitutes. A sharp reduction in the supply of steak would
a. increase consumer surplus in the market for steak and decrease producer surplus in the market for chicken. b. increase consumer surplus in the market for steak and increase producer surplus in the market for chicken. c. decrease consumer surplus in the market for steak and increase producer surplus in the market for chicken. d. decrease consumer surplus in the market for steak and decrease producer surplus in the market for chicken.