Relating to the Economics in Practice on page 330: By not factoring in the external costs on society resulting from an environmental disaster caused by a specific firm, the firm will most likely ________ its product, and at equilibrium, the marginal social costs of production will be ________ the price.

The fact that individual productive resources are NOT equally useful in all activities

A) implies that a production possibilities frontier will be bowed outward. B) implies that gain from specialization and trade is unlikely. C) follows from the law of demand. D) implies a linear production possibilities frontier.

Open market operations intended to offset movements in noncontrollable factors (such as float) that affect reserves and the monetary base are called

A) defensive open market operations. B) dynamic open market operations. C) offensive open market operations. D) reactionary open market operations.