One way of representing attaining the positive externality by the government is through the promotion of education.
Option D is the correct answer.
<h3>What is an externality?</h3>
When the cost or advantage is received by a third party that is not related to the economic activity, then it is considered an externality.
A positive externality is the arousal of a positive effect on either production or consumption. The act of penalizing a company for pollution, imposing taxes on citizens earning more than $250,000 and the reduction in rates of interest would all be classified as negative externalities.
Therefore, the encouragement of education by the government is regarded as a positive externality.
Learn more about the externality in the related link:
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Answer: The above is an example of a basic employment generating nonbasic employment.
Explanation: Basic employment is employment as a result of businesses that operate on a very large scale, and usually these businesses export their products outside the location where they are because they can more than meet the demand of that locality.
As seen in the question above, where fishing is the mainstay of the economy of Seattle. This means the fishing industry in Seattle can meet the demand of Seattle and still have commercial quantities for export.
Non-basic employment often refers to small businesses who offer services to the local customers.
In the case of the question above, the fishing industry has brought about a rise in small businesses, these small businesses will make profit from meeting the needs of the fishermen.
Answer:
Fair price =$635.23
Explanation:
<em>Th fair price that he should be willing to pay is the present value of the $1000 expected in 5 years time.</em>
<em>Present value (PV) is the worth today if a future amount is discounted at a particular rate of interest.</em>
PV = FV × (1+r)^(-n)
PV - present value = ?
FV -Future value - 1000,
r- discount rate - 9.5%,
n - future date - 5
PV = 1,000 × (1.0950^(-5)
PV = 1,000 × 0.6352
PV =635.2276653
Fair price =$635.23
Answer:
The loss of the financial institution is $413,000
Explanation:
Let's say that after 3 years the financial institution will receive:
0.5 * 10% of $10million
= 0.5 * 0.1 * 10000000
= $500,000
Then, they will pay 0.5 * 9% of $10M
= 0.5 * 0.09 * 10000000
= $450,000
Therefore, their immediate loss would be $500000 - $450000
= $50000.
Let's assume that forward rates are realized to value the rest of the swap.
The forward rates = 8% per annum.
Therefore, the remaining cash flows are assumed that floating payment is
0.5*0.08*10000000 =
$400,000
Received net payment would be:
500,000-400,000= $100,000. The total cost of default is therefore the cost of foregoing the following cash flows:
Year 3=$50,000
Year 3.5=$100,000
Year 4 = $100,000
Year 4.5= $100,000
Year 5 = $100,000
Discounting these cash flows to year 3 at 4% per six months, the cost of default would be $413,000
Answer: (D) Support process
Explanation:
The support process is one of the type of primary process that helps in determining the main core functions and also the operations such as communication, accounting, managing and maintenance of an organization.
The main purpose of the support process is to manage the development and the configuration management in an organization.
According to the given question, the support process is refers to the business process which include the purchasing the various types of materials that is used in the manufacturing purpose such as installations and also managing the inventory system.
Therefore, Option (D) is correct answer.
