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

Compared with other countries in the OECD, U.S. government spending relative to GDP is

A) among the highest. B) about average. C) slightly below average. D) among the lowest.

Holding demand constant, an increase in supply leads to

A) lower prices and higher quantity demanded. B) lower prices and lower quantity demanded. C) higher prices and higher quantity demanded. D) higher prices and lower quantity demanded.