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Serjik [45]
3 years ago
14

If an activity generates a positive externality, the government can increase total economic surplus by ___ the activity, and if

an activity generates a negative externality, the government can increase total economic surplus by ______ the activity. A. taxing: banning B. subsidizing: banning C. subsidizing: taxing D. publicizing: taxing
Business
1 answer:
Fofino [41]3 years ago
8 0

Answer:

C. subsidizing: taxing

Explanation:

An activity generates a positive externality if the benefits of economic activities to third parties exceeds its costs.

Example of activities that generate positive externality are education and research.

Government ought to encourage the production of activities that generates postive externality. One of the ways this can be done is through Subsidy. Subsidy reduces cost of production and increases production.

An activity generates negative externality if the benefits of economic activities to third parties is less its costs.

An example of negative externality is pollution.

Government can discourage activities that generates negative externality by taxation. Taxation increases the cost of production and discourages production.

I hope my answer helps you

You might be interested in
Waterway Industries sells radios for $50 per unit. The fixed costs are $625000 and the variable costs are 60% of the selling pri
Sonbull [250]

Answer:

29,200 units

Explanation:

The computation of new break even point is given below:-

= Fixed Cost ÷ Contribution per unit

Fixed cost

= $625,000 + $105,000

= $730,000

Variable cost per unit = 50% of selling price

= $25

So, the break even point = $730,000 ÷ 25

= 29,200 units

Therefore for calculating the break even point we simply divide the $730,000 from 25 per unit variable cost.

7 0
3 years ago
If the demand for a good rises by more than the supply of the good falls, then the good’s equilibrium price will __________ and
mina [271]

Answer:

Rises

Rises

Explanation:

If the demand for a good rises more than the fall in supply, both equilibrium price and quantity would increase.

Refer to the attached image for a graphical explanation.

I hope my answer helps you

3 0
3 years ago
Why is the market demand curve for public goods calculated as a vertical summation of individual demand​ curves?
never [62]

Answer:

c

Explanation:

A public good is a good that is non excludable and non rivalrous. Everyone has assess to the statue and because one person is enjoying the view of the statue does not means another person cannot enjoy the view of the statue. The demand curve for public goods is summed vertically because all individuals can consume every unit of the good at the same time.

A private good is a good that is excludable and rivalrous. They are usually exchanged in the market by private sector businesses. It is only you who purchased the ferrari and those you allow that can use the ferarri.

8 0
3 years ago
Mentor Graphics Corporation, a supplier of electronic design automation systems, just announced its second quarter results. Acco
saveliy_v [14]

Answer:

1. Which of the excluded items represent ongoing costs of running the business and which are one-time "special" costs?

it depends on the company and the actual transactions, e.g. equity based compensation might be a one time special cost because it occurred only once and is doubtful that it happens again. But if the company regularly rewards its top managers with this type of compensation, then it is an ongoing cost. E.g. Tesla awarded a HHHHUUUUUUGGGGGGGEEEEEEE bonus to Elon Musk (worth hundreds of millions) but it was a one time event. While many companies use equity compensation on a regular basis.

Severance and related employee "rebalancing" costs generally take place when a company fires a lot of people because it is cutting down some division or product line. Hopefully, they should never happen, and if they do, it should be only a one time event.

Fees paid to consultants and interest expenses are ongoing costs that will probably occur in the future.

Losses related to the abandonment of excess facility space and a facility fire should be one time events. It would be really bad for them to keep happening (same as severance and rebalancing costs)

8 0
3 years ago
The following costs were incurred in May: Direct materials$40,500 Direct labor$36,700 Manufacturing overhead$28,800 Selling expe
Lady bird [3.3K]

Answer:

$77,200

Explanation:

Conversion cost is calculated as;

= Direct labor cost + Manufacturing overhead.

Given that;

Direct labor cost = $40,500

Manufacturing overhead = $36,700

Conversion cost = $40,500 + $36,700

= $77,200

7 0
3 years ago
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