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Question 1 (ILOs: A1, A2, C1, C2,D4) True and False. For each of the following indicate whether the statement is true or false. If the is false, rewrite so that it is a true statement 1. Externalities result in an efficient allocation from the standpoint of society at large. 2. Markets tend to produce too little of goods that are characterized by externalities 3. The reallocation of resources that result from corrective taxation of a good with negative externalities typically means that there will be additional jobs in the industry producing the good 4. The cost of waste disposable are primary positive costs 5. Markets tend to underproduce goods characterized by negative externalities because some of the costs of these goods are not recognized in the market 6. Government purchases may include both government expenditures and transfer of payment 7. The imposition of an excise tax can be represented as an increase in supply 8. An income tax is said to be progressive if people with higher incomes are required to pay more dollars in taxes than people with lower income 9. The marginal social cost of a good is the minimum sum of money required to compensate the owners of inputs used in producing the good for making an extra unit of the good available 10. Program budgeting is a system of managing government revenues by attempting to the program proposals of all government agencies authorized to achieve similar objectives