The import demand curve shows the amount of the home country's: ...

[Diane]

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.

[Galvarado142]

Answer to Question 1

b

Answer to Question 2

b

[Diane]

Excellent

[aliotak]

Thanks for the timely response, appreciate it