<span>$104,500 * 0.04 = $4,180 - $665 = $3,515</span>
Answer:
a. a subsidy so that the firm can operate where marginal social benefit equals marginal social cost.
Explanation:
The private company is producing when the marginal revenue matches the marginal cost. The governemtn will want to decrease the cost (that's by subsidize the activity) to match the marginal revenue considering the positive externalities.
The government will do a pigouvian subsidy.
The government reasons to go for this is that the good or services provide positive externalities Which are enjoy by people who doens't purchase the good. Thus, this subsidy will increase the amount of ooutput thus, generating a better social benefit.
Answer:
C. Maryann should specialize in the activity for which she has a comparative advantage.
Explanation: Being able to produce goods by using fewer resources, at a lower opportunity cost is comparative advantage. Maryann should specialize in the activity where she has this.
The correct answer is option B.
The board of governors make decisions regarding changes in the discount rate.
<h3><u>
What is board of governors?</u></h3>
- The Federal Reserve System is governed by the Board of Governors, which is based in Washington, D.C.
- It is governed by seven individuals, known as "governors," who are appointed by the American president and approved in their roles by the American senate.
- In order to advance the objectives and carry out the duties assigned to the Federal Reserve by the Federal Reserve Act, the Board of Governors directs how the Federal Reserve System is run.
- The FOMC, the section of the Federal Reserve that determines monetary policy, includes all of the Board members.
- The periods of each member of the Board of Governors are staggered so that one term ends on January 31 of every even-numbered year. Each member is appointed to the position for a 14-year period.
When the Reserve Banks lend to depository institutions and others, as well as when they offer financial services to depository institutions and the federal government, the Board also offers general oversight, direction, and counseling.
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