If the production of a good created both external costs and external benefits, but the external costs were greater, without government intervention, a market economy will not produce the product at all.
In the production and consumption of goods and services, there exist costs that are passed on to a third party. The general public, who is ultimately responsible for paying for them, is in fact subsidizing goods and services with external costs.
External costs are still necessary to be paid for even when they are not included in the product's price. It is ultimately the responsibility of society as a whole to pay for external costs through taxes, accident compensation, medical expenditures, insurance premiums, deterioration in environmental quality, and losses in natural capital.
Usually, the price of goods and services includes External costs, which results in a higher overall cost. Because consumers frequently select the lowest options, clean, sustainable products have a pricing disadvantage.
Learn more about External costs here
brainly.com/question/13524644
#SPJ4
Answer:
formed a valid contract because Rachel's outward expressions showed the formation of a contract.
Explanation:
In contract, outward expressions refers to a situation when both parties has directly communicate the terms of a certain transaction and agreed upon it.
The contract is considered as 'valid' and considered to be a verbal agreement as soon as Rachel proposed a price and Julius agreed upon it.
One thing to remember, Even though this contract is considered as valid , it would be hard for Julius to held Rachel accountable to court since he has no way to proof that the verbal agreement has been made.
Answer:
See below
Explanation:
The preparation of the end December income statement for the company is seen below;
Service revenue
$8,800
Less:
Salaries expenses
($1,950)
Utilities expenses
($1,000)
Net income
$5,850
Answer: a. True
Explanation: Higher interest rates tend to attract foreign investment, increasing the demand for and value of the home country's currency. Foreign investment involves capital flows from one country to another, granting extensive ownership stakes in domestic companies and assets. Foreign investment denotes that foreigners have an active role in management as a part of their investment. One major spur of this inflow and outflow is the existing interest rate a country offers. Higher interest rates increases inflow of capital. The opposite is true for countries with lower interest rates, as there is an outflow of capital to countries having higher interest rates.
