Answer:
The correct word for the blank space is: negative.
Explanation:
An Externality is a cost or benefit incurred or obtained by a third party that does not influence the factors which generated the cost or benefit. In the same context, negative externalities are those that affect individuals who are not involved in the production process that causes the negative externality. <em>Pollution, noise, traffic, construction works</em> are considered some examples.
Answer:
a.borrowers gain at the expense of lenders.
Explanation:
Suppose the annual rate of inflation has been 3 percent during each of the last three years and that borrowers and lenders have come to expect this rate of inflation. If the inflation rate unexpectedly rises, then borrowers gain at the expense of lenders.
As inflation increases, two things happen
1. The amount of interest paid to lenders technically becomes of smaller value and lenders are loosing while borrowers are paying lesser
2. As inflation sets in, wages are increased to compensate for inflation and since the borrower already owed money before the inflation occurred, now he or she has more money in his or her paycheck to pay off the debt.
Answer: Andy's demand for beer to increase
Explanation:
Andy's views beer and pizza as complement to each other. Hence when the price of pizza decreases Andy's demand for beer would increase as he would order more beer than pizza so as to complement both offers.
Answer:
Administrative Cost
Explanation:
Administrative cost refers to the cost used in directing and controlling a firm, corporation or organisation. These cost includes salary and wages of employee, insurance, depreciation, postage, stationery, rent, etc.
It is sometimes refers to as general cost. It is used in the day to day running of the business, but not directly attributable to any production process. These cost can not be categorized as either financing or distribution cost. Hence, it falls under administrative cost.
Answer: E) above the market wage, causing labor demand to be less than labor supply.
Explanation:
Minimum wage simply refers to the lowest wage that employers can pay their workers. Minimum wage is a form of price floor which means that it's typically higher than the equilibrium or market wage.
In this case, since it's higher than the market wage, there'll be an increase in the supply of labor as those that are unemployed will be willing to work duw to the increase in the wage rate.
On the other hand, there'll be a reduction in the demand for labor as employers typically will want to reduce cost and won't be interested in employing more workers.
Therefore, the correct option is E
