Which of the following statements about private and social costs is TRUE in the presence of negative externalities created by pollution?
A) Competitive market produces excessive pollution.
B) The optimal amount of pollution is zero.
C) Social costs exclude externalities.
D) Social producer surplus exceeds private producer surplus.
A
Economics
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Once trade begins, a country will tend to specialize completely in the production of its export good
Indicate whether the statement is true or false
Economics
In the long-run ISLM model and with everything else held constant, the long-run effect of a cut in government spending is to ________ real output and ________ the interest rate
A) increase; increase B) increase; not change C) not change; increase D) not change; decrease
Economics