To correct for the underproduction of products with positive ...

[Hungry!]

To correct for the underproduction of products with positive externalities, the government must
 
  A) provide the incentives for the private sector to produce and consume the good.
  B) provide tougher regulations on the industry.
  C) increase taxes on the industry.
  D) fine the industry.

Question 2

According to the circular flow of income and output, saving causes
 
  A) total output to fall.
  B) consumption expenditures and total output to fall.
  C) consumption expenditures to fall short of total output.
  D) investment spending to fall.

[Kdiggy]

Answer to Question 1

A

Answer to Question 2

C

[Hungry!]

Thanks for the timely response, appreciate it

[Missbam101]

YES! Correct, THANKS for helping me on my review