In the above figure, the deadweight loss due to the tax is

When production of a good generates external costs, the

a. demand curve for the good will overstate the true social benefits from consumption of the good. b. demand curve for the good will understate the true social benefits from consumption of the good. c. supply curve for the good will overstate the true social cost of producing the good. d. supply curve for the good will understate the true social cost of producing the good.

The productivity growth rates of richer countries tend to be ____ than those of poorer countries.

A. higher B. lower C. increasing faster D. decreasing faster