When positive externalities exist, markets tend to overproduce

According to the Added Perspective in the text, a new cost-effective vaccine for chickens can be expected to have what effect on the Malaysian production possibilities curve and why?

a. increase, because it is a technological innovation b. decrease, because it will cause a loss of jobs for farmers c. increase, because capital will decrease as less is needed d. decrease, because fewer chickens will survive with the vaccine e. decrease, because the vaccine is very costly

For which of the following environmental pollutions would we expect that an inverted-U relationship would exist between environmental harm and per capita income?

A. Lead pollution in water B. Sulfur dioxide in air C. Airborne heavy particles D. Carbon dioxide emissions