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3 years ago

When a market experiences a positive externality,

Business

1 answer:

antoniya [11.8K]3 years ago

5 0

Answer:

b. The demand curve does not reflect the value to society of the good.

Explanation:

An externality is a financial term alluding to an expense or advantage caused or got by an outsider. Nonetheless, the outsider has no power over the making of that cost or advantage.

An externality can either be positive or negative which can be caused by either production or consumption of a good or service. The cost or the benefit can affect an individual or a society as a whole. A typical example of a negative externality is pollution which can cause negative cost to a third party in terms of health expenses. An example of a positive externality on the other hand is when a well educated labor force increase their productivity.

The government and local authorities can control negative externality by imposing taxes and regulation of these products. The government can also overcome negative externality by imposing subsidies on the goods that improve positive externality.

The demand curve however does not reflect the value to society of the good. It only reflects the relationship between the price and the quantity of goods consumed.

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beks73 [17]

Answer: -18.80% for bond J, -15.46% for bond K

Explanation:

If interest rates suddenly rise by 2 percent, the percentage price change of bond J is -18.80% while the percentage price change of bond K is -15.46%

The calculation is provided below

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3 years ago

When a temporary negative supply shock hits the economy ________.

Naddika [18.5K]

Answer:

C. the divine coincidence does not always hold

Explanation:

When a temporary negative supply shock hits the economy the divine coincidence does not always hold.

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3 years ago

Consumer surplus is A. the difference between the highest price a consumer is willing to pay and marginal benefit. B. the differ

belka [17]

Answer:

The correct answer is C. the difference between the highest price a consumer is willing to pay and the price the consumer actually pays.

Explanation:

Consumer surplus arises from the law of diminishing returns. This means that the first unit to acquire we value it highly but as we acquire additional units our valuation falls. However, the price we pay for any unit is always the same: the market price. In this way, we enjoy a positive surplus of the first units we acquire until we reach the last one in which the surplus will be zero.

In graphic terms, consumer surplus is measured as the area below the market demand curve and above the price line. The demand curve measures the amount consumers are willing to pay for each unit consumed. Then, the total area below the demand curve reflects the total utility of consumption of the good or service. If the price we pay for each unit is subtracted from this area, the consumer surplus is obtained.

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3 years ago

Outlines give you a chance to organize your thinking before determining word choice and sentence structure. Which of the followi

Leona [35]

Answer:

<u>When making an outline, it is a good practice to:</u>

Put the main idea in the title
Have one main topic that does not relate to the title
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3 years ago

The Victoria Fund, a child welfare fund, received $50,000 in cash in 2018. The donor requires the gift be held in perpetuity and

maw [93]

Answer:

The $50,000 must be reported as assets with donor restrictions.

Explanation:

Donor imposed restrictions can be temporary or perpetual; the $50,000 are perpetually restricted since they must be invested and the income received should be used for its program of promoting adoption of young girls.

3 0

3 years ago