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stellarik [79]
3 years ago
6

Bakers are much likely to supply pastries to the market if property rights are not enforced. In the presence of market failures,

public policy can improve economic efficiency. Classify the source of market failure in each case listed.
Business
1 answer:
bixtya [17]3 years ago
6 0

Answer:

1) When there is only one car dealership in a small town, giving the dealership the ability to influence the price of cars, market failure is due to <u>MARKET POWER. </u>

2) When a manufacturing plant dumps chemical waste into a nearby river, poisoning the water supply for a small town downstream, market failure is due to <u>EXTERNALITY.</u>

Explanation:

The car dealership has an excessive market power , which refers to the firms ability to increase the price of its products (cars) above the price of a competitive market.

When the manufacturing plant dumps chemical wastes into the river, it is causing a negative externality  on the town's water supply. This means that the town (which is a third party in this case) is suffering from the actions  of another party's economic transactions.

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Match the legislation with the correct description.
jeka94
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3 years ago
If you use money as a unit of account, you would be___________.a. returning a sweater to the department store. b. searching the
zepelin [54]

Answer:

b. searching the Internet for a deal on a new computer

Explanation:

When one is searching the Internet for a deal on a new computer, one is comparing price on different websites. Price is an example of money being used as a unit of the account as the price of something is indicated by certain units of money.

5 0
3 years ago
Alternative price indexes
cluponka [151]

Answer:

-value of all goods and services produced in the economy this year

-this year's prices

-value of all goods and services produced in the economy this year

-the base year's prices

-bought by consumers

-the first scenario would have effect on the GDP deflator

-the second scenario would have effect on the GDP deflator

Explanation:

The GDP deflator is used in measuring inflation in the economy by measuring changes in prices of goods in the economy. It is used together with other indices such as consumer price index in arriving at a more accurate or balanced measurement of inflation I'm the economy. The GDP deflator would be affected above because it is more comprehensive in it's calculation or measurement as it doesn't take into account only a basket of goods and services like the Consumer price index does

6 0
3 years ago
i need help ASAP!!!! Generally, parties of 8 or more require many restaurants to include gratuity of 18% on the check before pre
igor_vitrenko [27]

Answer:

b)$34.45

Explanation:

Gratuity is similar to a service charge.

If the bill is $191.40, and gratitude of 18 percent will be added.  

The actual gratitude amount that will be added will be equal to

18% of the $191.40 bill.

=18/100 x $191.40

=0.18 x 191.40

= $34.45

4 0
2 years ago
According to the quantity theory:
lana [24]

Answer:

B) Inflation is everywhere and always a monetary phenomenon.

Explanation:

Henry Thornton developed this theory in 1802. According to the Quantity Theory, In an economy, there is a direct relationship between the quantity of money in the economy and the prices of goods and services. The price levels are directly related to the amount of money in circulation, which is the cause of inflation. Hence the consumer has to pay more for the same amount of commodity.

6 0
2 years ago
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