If too little of a good is being produced in the free market, the ...

[swpotter12]

If too little of a good is being produced in the free market, the production of the good is likely to have a(n) ________ externality.
 
  A) positive
  B) negative
  C) pecuniary
  D) absolute

Question 2

According to the economic way of thinking, alcohol prohibition in the U.S.
 
  A) effectively destroyed peoples' incentives to produce and drink liquor.
  B) abolished the supply and demand process in liquor.
  C) led to a surge in prices and considerable profit opportunities for people willing to break the law.
  D) failed to make liquor truly illegal.

[shaquita]

Answer to Question 1

A

Answer to Question 2

C

[swpotter12]

Gracias!

[helenmarkerine]

TYSM