Answer:
The correct answer is option c.
Explanation:
Externalities refers to the situation in which costs or benefits arising from the activities of someone are incurred or received by the some other third party.
Externalities can be classified into two types, namely, positive and negative.
In case of negative externalities the cost arising from the activities of some person are incurred by a third party.
Negative externalities lead to market failure.
Answer: B
Explanation: There is an unlimited amount of wants but limited amount of resources
Answer:
$378,756
Explanation;
The net present value of land will be =$450,000/1.09^2=$378,756
The land will be recorded in net present value of land by discounting the cost of land with interest rate of buying from the bank.
An increase in spending of $25 billion increases real gdp from $600 billion to $700 billion. The marginal propensity to consume must be "4".
<h3>
What do you mean by Marginal Propensity to consume?</h3>
The marginal propensity to consume is refers to as the proportion of any change in income that is spent on consumption.
In economics, this term is used to refer to the measurement made in order to determine consumption when the rent is increased by one unit. This measurement is nothing more than a mathematical relationship to calculate how people invest in consumption or save the income that is increased.
Calculation:

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