Answer:
The correct answer is letter "D": All of these are correct.
Explanation:
The Free Rider Problem refers to someone being able to gap for less or even for free what others pay more for. The problem arises when individuals are unwilling to pay their fair share for something that most others pay for. The problem is more often while talking about public goods. To avoid this issue, some sort of special must be given to consumers such as discounts, promotions for subscriptions or special information online.
Whenever there is maximization of total surplus that is been received by those that are part of society by market allocation of resources then there is market Efficiency.
- Economic efficiency can be regarded as economic state whereby there is allocation of resource to serve each individual or entity in way that everyone is satisfied while minimizing waste and inefficiency.
Therefore, When there is an economy efficiency, there would be maximization of total surplus.
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They can be described as traumatized, horrified, mortified, etc.
Answer:
The lending ability will increase by $2.25 billion.
Explanation:
The reserve requirement is given at 25%.
If federal reserve bank buys $3 billion in government securities, the total reserve will increase by $3 billion.
The excess reserve will be
=Increase in total reserve-required reserve
=$3 billion-25% of $3
=$(3 billion- .25*3) billion
=$(3-0.75) billion
=$2.25 billion
Answer: $15,000
Explanation:
From the question, Carl transfers land with a fair market value of $120,000 and basis of $30,000, to a new corporation in exchange for 85 percent of the corporation's stock and that the land is subject to a $45,000 liability, which the corporation assumes.
The amount of gain that Carl must recognize as a result of this transaction will be the difference between the liability the land is subjected to which is $45,000 and the basis of the land which is $30,000.
= $45,000 - $30,000
= $15,000