Author Question: If the government overcorrected in a situation of external costs a. More than the efficient amount ... (Read 124 times)

awywial · **on:** Jun 30, 2018

If the government overcorrected in a situation of external costs
a. More than the efficient amount of the good would end up being produced.
b. Less than the efficient amount of the good would end up being produced.
c. It would result in a welfare cost in that market that was bigger than the initial welfare cost.
d. Both a and c are would result.

Question 2

When a country allows trade and becomes an exporter of goods, producers gain more than consumers lose.
a. True
b. False
Indicate whether the statement is true or false