Author Question: When government intervenes in the production process because external benefits exist, it typically ... (Read 58 times)

savannahhooper · **on:** Jun 29, 2018

When government intervenes in the production process because external benefits exist, it typically attempts

A) to impose a tax on each unit produced.
B) to shift the industry's demand curve to the left.
C) to shift the industry's demand curve to the right.
D) to shift the industry's supply curve to the left.

Question 2

In the above figure, the combination of personal computers and televisions shown by point w

A) is an efficient use of society's resources because it is below the production possibilities curve.
B) is more desirable than point x because producing at point w does not put a strain on society's resources.
C) is attainable but involves the inefficient use of some of society's resources.
D) is beyond the capacity of society to produce.