Answer: A positive externality, negative externality and asymmetric information
Explanation:
A market failure is one of the type of economical situation in which the the various types of products and the services are distributions in an inefficient manner.
A positive externality, negative externality and an asymmetric information are the market failure that the government wants to change by the process of intervention
Externality is one of the type of advantage or cost that basically affect the third party in the economics so the free market under consuming the various types of products. Therefore, the given answer is correct.
Answer:
A positive balance of trade
Explanation:
The theory of mercantilism states that a country’s power depends mainly on its wealth. During the Age of Exploration, this meant that the prosperity of a nation should depend on a large supply of bullion (silver and gold) and a positive balance of trade. A positive balance of trade implies that exports should exceed imports. There were tariffs on imports. This discouraged importation.
Mercantilism was commonly practised in Europe within the 16th to 18th century.
I hope my answer helps you
Answer:
as the price of a good increases,the quantity supplied decreases
Answer:
First option will be recommended.
Explanation:
To determine which option to be taken, we calculate the net present value each option generates. The option generating higher NPV should be recommended.
- Net present value of first option = Lump sum receipt = $150,000.
- Net present value of second option will be found by discounting cash flows at investing rate 12% and calculated as followed:
+ Present value of 20 equal annual payment of $14,000 + Present value of $60,000 paid in 20 years = (14,000/12%) x [ 1 - 1.12^(-20)] + 60,000/1.12^20 = $110,792.
As net present value of the first option is higher than the second option, first option will be recommended.
Answer:
option D - $22,000 gain
Explanation:
the gain can be calculated by using the following relation
Face Value + Unamortized Premium - Purchase Price = gain
where,
Face Value - $1,000,000
Unamortized Premium - 60% x $20,000
Purchase Price - 99% x $1,000,000
putting all value to get gain or loss on the retirement
= $1,000,000 + (60% x $20,000) - (99% x $1,000,000)
= $22,000 gain
