It is possible for a market for a good to experience a surplus and a shortage at the same time

The measure of saving in the National Income and Product Accounts includes

A) capital gains on stocks, bonds, houses, and other assets. B) purchases of consumer durables. C) nominal interest payments which households receive from corporations. D) all of the above.

If a production process generates pollution, then a competitive market will produce more of the good than is socially optimal because

A) firms take all costs into consideration. B) firms incur all costs of production but ignore some of them. C) firms ignore the costs of production that they do not incur. D) firms set price equal to social marginal cost.