What resource problem is created by negative externalizes and what methods are suggested for dealing with this problem?
Please provide the best answer for the statement.
When there are negative externalizes from the production process, this causes an over allocation of resources to the production of a product. The reason for the over allocation is that the firm is not paying for all the costs of production. The five suggested ways for correcting for this over allocation of resources are: (1) private bargaining; (2) the use of liability rules and lawsuits; (3) imposing a tax on producers; (4) direct controls such as legal mandates or restrictions; and (5) creating a market for externalize rights.
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Suppose the estimated fixed cost of Christmas trees business is $7,000 and not sunk. The estimated variable cost for each tree is $20
According to the forecast, the market price for Christmas trees is $25 each and the owner could sell 1000 trees at most each year. In the long run, the owner A) should shut down. B) should keep operating. C) should sell less. D) None of the above.
One risk of targeting inflation at zero is that ______.
a. it may damage the credibility of the central bank b. deflation may be prevented c. investment spending may reach unsustainable levels d. interest rates may fall too low
Refer to the above table. The value of M1 is
A. $810 billion. B. $1,260 billion. C. $760 billion. D. $2,560 billion.