Private costs of an economic activity exceed social cost when external benefits are created

Foreign investment in the U.S. causes the

a. balance on current account to become positive b. sum of the capital and current accounts to be positive c. balance of trade to become negative d. quantity of imported services to increase e. value of the dollar to increase

The Earned Income Tax Credit

a. tends to increase income inequality. b. is a program that provides additional income to workers with above-average incomes. c. tends to reduce income inequality. d. is both a and b.