The figure above shows the market for transportation services, which produces an external cost due to the air pollution that is created. The efficient quantity of transportation services is ________ and the corresponding price is ________

In an open economy, an increase in savings because of concerns about the future should cause the domestic real interest rate to ________ and should cause net exports to ________

A) rise; rise B) rise; fall C) fall; rise D) fall; fall

Assume that Burger King employees work in an air-conditioned environment while McDonalds employees do not. Other things equal, you would expect wages to be ____ in Burger King because ____

a. higher; Burger King employees are more productive b. lower; McDonald's employees are more productive c. higher; Burger King is a more prestigious place to work d. lower; Burger King has more favorable working conditions