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.
Answer:
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Answer:
In an Internal Service Fund, the expectation is that:_____.
A. Each year's revenues should equal each year's expenses because the revenues are simply an allocation of that year's expenses.
Explanation:
There are two proprietary funds used in governmental accounting. One is the internal service fund. The other one is the enterprise fund. The internal service fund tracks the goods or services rendered by a service department to other governmental departments. It is established on a cost reimbursement basis. This is why the expenses for the year are expected to equal the annual revenue.
Solvency. The ability for a business to pay debts on hand is referenced as solvency same Latin root as resolve. Liquidity references the percentage of cash on hand.
