In the presence of a negative externality
a. the market solution is efficient, but the market price is too high
b. the market price is efficient, but the corresponding quantity is inefficient
c. the market solution results in too little output being produced
d. the efficient outcome is determined where the marginal social cost and market demand curves intersect
e. the efficient outcome is determined where the marginal cost and market supply curves intersect
D
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
If the price of a product increases, the demand for the resource used in producing that product decreases
a. True b. False Indicate whether the statement is true or false
The assumption that labor markets clear makes it very easy for the classical model to explain recessions
a. True b. False
Which of the following is true of sub-Saharan Africa?
a. The poverty rate in the region is low. b. Most of the sub-Saharan African countries rank among the freest economies in the world. c. The poverty rate in sub-Saharan Africa is the highest of any region in the world, and the reduction in the rate during the past quarter of a century has been modest. d. The poverty rate in sub-Saharan Africa is the lowest of any region in the world, and the rate has declined sharply during the past quarter of a century.