Having worked for many of the firms in the petroleum industry, you know that the price elasticity of demand for a representative firm is about ?1.25. Moreover, a recent report from an economist in your office revealed that the price elasticity of demand for the petroleum products sold by your firm is ?1.5. Based on this information, you know that the Rothschild index is:

An event that allows the economy to operate more efficiently by producing more outputs without using any more inputs is referred to as

A) technological progress. B) absolute progress. C) efficiency progress. D) capital investment.

The basic reason that a competitive unregulated market produces an inefficient amount of a good with an external cost is because

A) producers cannot measure marginal social cost. B) producers do not pay the external cost. C) the general public does not care about external costs. D) external costs are not a political issue. E) the external cost is paid by consumers rather than producers.