When a farmer decides to raise hogs instead of cattle, the farmer is answering the ________ part of one of the two big economic questions

Which of the following might be a method that the government could use to correct a negative externality?

A) an effluent fee on waste from the production of goods that create negative externalities B) government subsidies to producers of goods that create negative externalities C) financing additional production of goods that create negative externalities D) encouraging overallocation of resources of production of goods that create negative externalities

Economists believe that trade is necessary for prosperity because

a. every country lacks some vital resources that it can get only by trade. b. each country's climate makes it a relatively efficient producer of some goods, and an inefficient producer of other goods. c. specialization permits large outputs and can produce economies of scale. d. All of the above are correct.