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Vanyuwa [196]
4 years ago
5

If the consumption of a product or service involves external benefits, then the government can improve efficiency in the market

by Multiple Choice a. providing a subsidy to correct for an overallocation of resources. b. providing a subsidy to correct for an underallocation of resources. c. imposing a corrective tax to correct for an overallocation of resources. d. imposing a corrective tax to correct for an underallocation of resources.
Business
1 answer:
likoan [24]4 years ago
8 0

Answer:

b. providing a subsidy to correct for an underallocation of resources.

Explanation:

When the external benefit of an activity exceeds cost, the activity generates postive externality.

Activities that generate positive externality are usually under produced usually because of the high cost of production . Government can encourage production of activities that generate positive externality by giving subsidy which reduces the cost of production and increases production.

I hope my answer helps you

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You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving th
vovangra [49]

Answer:

Option 1 PV lumpsum = $200000

Option2 PV of Annuity = $195413.08035 rounded off to $195413.08

Based on the present value of both the options, Option 1 should be chosen as it has a higher present value than option 2.

Explanation:

To decide on the best option to choose among the given two, we need to find the present value of both the options.

As the first option is to receive a lumpsum payment of $200000 today, the present value of this option is also equal to $200000 as it will be received today.

Option two, on the other hand, is an annuity as fixed payments will be received after equal intervals of time and for a limited time period and at the end of the period which satisfies the criteria of annuity ordinary. We will use the formula for the present value of annuity which is,

PV of Annuity = C * [( 1 - (1+r)^-n) / r]

Where,

  • C is the periodic payment
  • r is the rate of return of discount rate
  • n is the number of periods

The periodic payment is provided as $1400. We are also provided with and APR of 6% which is the Annual rate. We will have to convert it into monthly rate by dividing it by 12. We are also provided with the number of years which we will need to convert into number of months by multiplying it by 12.

Monthly r = 6%/12 = 0.5%

Number of periods = 20 * 12 = 240

PV of Annuity = 1400 * [( 1 - (1+0.5%)^-240) / 0.5%]

PV of Annuity = $195413.08035 rounded off to $195413.08

5 0
3 years ago
Kelley Co. has $2,000,000 of 8% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of $30 par value c
postnew [5]

Answer:

Explanation:

The journal entry is shown below:

Bonds payable A/c Dr $500,000

Premium on bonds payable A/c Dr $28,125

           To Common stock A/c $450,000

           To Paid in capital in excess of par A/c $78,125

(Being the conversion of bonds is recorded)

The computation is shown below:

For Premium on bonds payable:

= $500,000 ÷ $2,000,000 × $112,500

= $28,125

For Common stock:

= $500,000 ÷ $1,000 × 30 × $30

= $450,000

And, the remaining balance is credited to paid in capital in excess of par

5 0
3 years ago
G why is the future value always more than the present value?
olya-2409 [2.1K]
The future value is always more than the present value because the value of the dollar can be higher in the next day. plus it can be adding the interest in the future value. 
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3 years ago
The ending retained earnigns balacne is reported on both the retaiend earnigns stastaemnt and the balacne sheet.
Rudiy27
I think it’s a, sorry if I’m wrong though
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3 years ago
Which might be an oppotunity cost of the city of aloharetta decision to construt the gateway and green way projects
nirvana33 [79]

An opportunity fee of the metropolis of Alpharetta's choice to construct the gateway and green way tasks: adopted in 2015, the plan proposes a series of small parks and inexperienced spaces that connect to each different, and could help make Downtown Alpharetta amusing.

Alpharetta is a town placed in northern Fulton County, Georgia, USA, and is part of the Atlanta metropolitan region. As of the 2010 census, Alpharetta's populace became 57,551. The populace in 2020 became 65,818. Alpharetta is a colorful Southern city with a great nice of lifestyles, making it a super region to live, paint and visit.

Alpharetta is a city in Georgia with a population of 66,566. Alpharetta is in Fulton County and is one of the best locations to stay in Georgia. dwelling in Alpharetta gives citizens a dense suburban feel and maximum citizens very own their houses. In Alpharetta, there are a whole lot of restaurants, espresso stores, and parks. Alpharetta is now Georgia's twelfth most populous town, boasts some of the great schools in the USA, and is understood far and extensive because of the generation metropolis of the South because of the huge quantity of tech-focused organizations that call Alpharetta home.

Learn more about Alpharetta here: brainly.com/question/25870256

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