Refer to Figure 18-1. Of the tax revenue collected by the government, the portion borne by producers is represented by the area

A Pigouvian subsidy leads to a socially efficient outcome by ________

A) raising individuals' marginal benefit from consumption B) lowering the marginal private cost of production C) raising the marginal external benefit from consumption D) lowering the marginal external cost of production

The total of all economic transactions between a nation and the rest of the world is referred to as the

A. balance of power. B. exchange rate. C. balance of payments. D. balance of trade.