If K-12 education is determined to be an inframarginal positive externality, this means that K-12 education is being underproduced

Which of the following statements is TRUE about the relationship among external, internal and social costs?

A) Social costs will always be higher than external costs. B) Social costs will always be higher than internal costs. C) Internal costs will always be higher than external costs. D) Internal costs will never equal external costs.

Recall the Application about the factors involved in causing recessions, and the causes of recessions in the United States from 1893 to 1990 to answer the following question(s).According to this Application, the recession in 1981 was caused by:

A. increasing oil prices which resulted in a decrease in aggregate supply. B. the government cutting back on aggregate demand to reduce inflation. C. a decrease in aggregate supply resulting from U.S. bank collapses. D. massive immigration from Europe to the United States.