Author Question: If production of an item results in negative external costs, then A) the market price is below ... (Read 37 times)

krzymel · **on:** Jun 29, 2018

If production of an item results in negative external costs, then

A) the market price is below the socially preferred price that reflects the external costs.
B) the market price is above the socially preferred price that reflects the external costs.
C) market forces will always correct the problem.
D) the market quantity is too low from society's point of view.

Question 2

One opportunity cost associated with going to college is

A) purchasing text books.
B) paying tuition.
C) giving up employment possibilities while in college.
D) paying for room, board, and other living expenses.