Author Question: The import demand curve shows the amount of the home country's: a. surplus at various prices below ... (Read 59 times)

Diane · **on:** Jun 30, 2018

The import demand curve shows the amount of the home country's:
a. surplus at various prices below the no-trade equilibrium.
b. shortage at various prices below the no-trade equilibrium.
c. equilibrium no-trade quantity demanded.
d. surplus at various prices above the no-trade equilibrium.
e. shortage at various prices above the no-trade equilibrium.

Question 2

If the production of a good created both external costs and external benefits, but the external costs were greater, without government intervention, a market economy will:
a. not produce the product at all.
b. overproduce the product.
c. underproduce the product.
d. produce the optimal amount of the product.