When external costs result from the production of a good,
A. Consumers have an incentive to consume too little.
B. Producers and consumers are not affected.
C. Both producers and consumers have an incentive to produce and consume too much.
D. Producers have an incentive to produce too little.
Answer: C
Economics
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Which of the following does not occur in resolving a debt crisis?
A) Debts are restructured B) Repayment periods are shortened C) Interest rates are reduced D) Some partial debt forgiveness
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