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Rufina [12.5K]
3 years ago
5

When producers operate in a market characterized by negative externalities, a tax that forces them to internalize the externalit

y will:
a. give sellers the incentive to account for the external effects of their actions.
b. increase demand.
c. increase the amount of the commodity exchanged in market equilibrium.
d. restrict the producers' ability to take the costs of the externality into account when deciding how much to supply.
Business
1 answer:
RideAnS [48]3 years ago
8 0

Answer:

A) give sellers the incentive to account for the external effects of their actions.

Explanation:

The effect of levying a tax that represents the cost of the externality could lead to one of two outcomes:

  • Firms that are causing the externality add the cost of the externality in the final price of their products.
  • Firms that are causing the externality attempt to reduce or eliminate the externality, so that prices  remain the same, and competitiveness is not lost.

For example, the most common example of an externality is pollution, therefore, the industrial sector operates in a market characterized by negative externalities. If the government levied a tax on factories accounting for the pollution they produce, these factores either would increase prices, or try to reduce pollution.

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Which of the following statements are true regarding​ externalities? ​(Check all that apply​.) A. Deadweight loss can be either
ella [17]

Answer:

d

Explanation:

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 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

Coase theorem has been proposed as a solution to externality. According to this theory, when there are conflicting property rights, bargaining between parties involved can lead to an efficient outcome only if the bargaining cost is low

Another solution to negative externality is through the activities of charities. Charities can raise donations to limit or regulate the activities of firms that constitutes a negative externality.

6 0
3 years ago
Between which two years was the greatest percentage decrease in gdp per
Alecsey [184]

the diffrence bewteen 2 and one it comes and goes like days

4 0
3 years ago
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A company uses a legacy on-premises analytics application that operates on gigabytes of .csv files and represents months of data
Vera_Pavlovna [14]

Answer:

The only way the company can achieve this, a solutions architect that will maintain two synchronized copies of all the .csv files on-premises and in Amazon S3 would be through:

C. Deploy an on-premises volume gateway. Configure data sources to write the .csv files to the volume gateway. Point the legacy analytics application to the volume gateway. The volume gateway should replicate data to Amazon S3.

Explanation:

6 0
3 years ago
Zoey Bella Company has a payroll of $10,000 for a five-day workweek. Its employees are paid each Friday for the five-day workwee
juin [17]

Answer:

                                  Dr.         Cr.

Salaries Expense   $8,000

Salaries payable                   $8,000

Explanation:

Four days of the week passed until December 31. So, the accrued expense will be as follow:

Payroll for 5 days = $10,000

Payroll for 1 days = $10,000 / 5  = $2,000

Payroll for 4 days = $2,000 x 4  = $8,000

Accrued Expense of $8,000 should be recorded and a liability will be made against this expense as payment has not been made.

5 0
3 years ago
The depreciation method that produces larger depreciation expense during the early years of an asset's life and smaller expense
Citrus2011 [14]

Answer:

Accelerated depreciation method

Explanation:

Accelerated method is a depreciation method in which the asset lost its book value at a quicker rate as compared with the straight line method. Under this method, it permit high deduction in the starting years so that the taxable income could be minimized

Therefore according to the given option the first option is correct and the same is to be considered

6 0
3 years ago
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