Author Question: Refer to the table above. If the six highest-value buyers and the six least-cost sellers engage in ... (Read 55 times)

FButt · **on:** Jun 29, 2018

Refer to the table above. If the six highest-value buyers and the six least-cost sellers engage in trade, what is the social surplus?

A) 6
B) 8
C) 10
D) 12

Question 2

How does the social problem of positive externalities differ from the problem created by negative externalities?

A) Positive externalities can create free-rider problems; negative externalities do not.
B) Positive externalities are created by altruistic people; negative externalities are not.
C) Negative externalities can create free-rider problems; positive externalities do not.
D) Negative externalities are created by selfish people; positive externalities are not.
E) Trick question: neither positive nor negative externalities create a social problem.