Given total cost and the quantity of output, marginal cost and average cost can be determined.

When property rights are assigned and transactions costs are low,

A) all costs and benefits are taken into account by the transacting parties so the transaction is efficient. B) externalities will result in market failure. C) the marginal social benefit curve shifts leftward and the marginal social cost curve does not shift. D) the marginal social cost curve shifts rightward and the marginal social benefit curve does not shift. E) the marginal social cost curve shifts rightward and the marginal social benefit curve also shifts rightward.

If the Gross Domestic Product (GDP) in the United States increases, which of the following will probably result?

a. Employment levels will increase. b. Employment levels will remain flat. c. Unemployment rates will increase. d. Wages will increase.