Graphically, the presence of an external cost that is ignored by producers can be shown as
A) a market supply curve to the left of the market supply curve for where the producers have to pay for the external cost.
B) a market supply curve to the right of the market supply curve for which the producers have to pay for the external cost.
C) a market supply curve the same as the market supply curve for which the producers have to pay for the external cost.
D) the absence of a market supply curve.
Answer: B
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a. are more likely to purchase insurance b. are less likely to purchase insurance c. are neither more nor less likely to purchase insurance d. are risk neutral
Technological innovations will cause:
a. the production possibilities curve to stay the same. b. the production possibilities curve to shift to the left. c. the production possibilities curve to shift to the right. d. an economy to operate below its production possibilities curve. e. the production possibilities curve to increase or decrease.