An externality is an example of（）
A. a corrective tax
B. a tradable pollution permit
C. a market failure
D. an equilibrium
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Absolute advantage is found by comparing different producers’（）
A. opportunity costs
B. payments to land, labor, and capital
C. input requirements per unit of output
D. locational and logistical circumstances
The best remedy for market failure is often（）
A. a market-based solution
B. shutdown of the market
C. no government intervention
D. externalizing the externalities
Taxes cause deadweight losses because they（）
A. lead to losses in surplus for consumers and for producers that, when taken together, exceed tax revenue collected by the government
B. distort incentives to both buyers and sellers
C. prevent buyers and sellers from realizing some of the gains from trade
D. All of the answers are correct
Normative statements are（）
A. descriptive
B. claims about how the world should be
C. claims about how the world is
D. made by economists speaking as scientists
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