If tastes for foreign goods and services go up, then we would expect imports to:

If firms are required to pay the social costs of a negative externality, they would produce more of the good causing the externality

a. True b. False Indicate whether the statement is true or false

The demand for an input will be more inelastic when

A) the demand for the product being produced is elastic. B) the cost of the input is a relatively large percentage of total production costs. C) the time period being considered is relatively long. D) it is difficult to substitute other inputs for this input.