Answer: True
Explanation:
Economics is the study of how decisions are made by humans when they're faced with scarcity of resources. It is concerned with how the resources that are in the economy will be efficiently used.
Therefore, the statement that "Economics is the social science concerned with the efficient use of scarce resources to achieve the maximum satisfaction of economic wants" is true
Answer:
D
Explanation:
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.
Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible
A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.
A public good is a good that is non excludable and non rivalrous. An example of a public good is a statue in a public park Everyone has assess to the statue and because one person is enjoying the view of the statue does not means another person cannot enjoy the view of the statue
Answer:
Their combined production should be 20 clothes and 12 wines.
Explanation:
<u>Argentina's opportunity cost to produce 1 unit of cloth = 0.1 wine</u>
Argentina's opportunity cost to produce 1 unit of wine = 10 clothes
Chile's opportunity cost to produce 1 unit of cloth = 0.5 wine
<u>Chile's opportunity cost to produce 1 unit of wine = 2 clothes</u>
Since Argentina' opportunity cost to produce clothes is lower, then it should specialize int he production of clothes. While Chile should specialize in the production of wine. Their combined production should be 20 clothes and 12 wines.
Purchases account is going to increase on the credit side and the cash account is going to decrease ( to be written on the credit side).
