Shortages below equilibrium will drive up price that decrease quantity demanded and increases quantity supplied moving toward equilibrium. Also because of the two conditions one is informal and the other one is free market entry. <span />
Negative Externality
This is the cost that is suffered by a third party as the result of a transaction. One example is the sale of cigarettes. The negative externality is the negative effects of cigarette smoke on people and the environment.
Answer: False
Explanation:
A short term tax cut will not affect spending as much as a permanent tax cut.
With a short term tax cut, people will know that they will have to go back to paying higher taxes in a short while and so will spend less so that they may be able to afford the higher taxes when they are reimplemented.
If a tax cut is long term however, consumers will spend more because they do not have to worry about having to afford to pay higher taxes after the year expires.
Consumers make that affect the decisions of the suppliers.
This productivity increase is best explained in term of OPERANT CONDITIONING.
Operant conditioning refers to a situation in which positive reinforcements are used to provide positive behavior. In operant conditioning, behavior is controlled by consequences. In the question given above, the positive reinforcement is the integration of the employees into profit sharing plan and the behavior that resulted from this is the significant increase in productivity.
