The marginal social cost curve ________ when production involves negative externalities
A) is parallel to the horizontal axis
B) is parallel to the demand curve
C) lies above the supply curve
D) lies to the right of the supply curve
C
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Taxation can promote good social policy while minimizing economic inefficiency.
Answer the following statement true (T) or false (F)
Table 35.1CountryTons of SoybeansComputerChina100300United States150750Based on the information in Table 35.1, assume China and the United States have the same amount of resources with which to produce soybeans and computers and they produce no other goods. The output of computers and soybeans would be greatest if
A. China specialized in producing computers, while the United States specialized in producing soybeans. B. Both countries prohibited trade. C. The United States produced both goods and exported them to China. D. China specialized in producing soybeans, and the United States specialized in producing computers.