Is working at hobby lobby as a cashier hard
1 answer:
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Answer:
option (B) 35 years
Explanation:
Given:
Real per capita GDP of Sweden = $50,000
Real per capita GDP of Chile = $25,000
Growth rate of Sweden = 2%
Growth rate of Chile = 4%
As per the Rule of 70, the economy's GDP doubles in
Therefore,
The GDP of Sweden will double in = = 35 years
and,
Chile will double in = 17.5 years
Therefore,
in 35 years the GDP of Sweden will be $100,000
and,
In 35 years the GDP of Chile will also be ($50,000 in 17.5 years and $100,000 in next 17.5 years) = $100,000
Therefore,
The real GDP per capita in the two nations to converge in 35 years
Hence,
The correct answer is option (B) 35 years
A positive externality is when a good or service is produced and used in a way that benefits a party that is not directly involved in the market transaction.
<h3>What are the reasons for the Market Failure?</h3>
Externalities, public goods, market regulation, and a lack of knowledge are all possible causes of market failure. Market failures can be resolved through government involvement, such as new legislation, taxes, tariffs, subsidies, or trade restrictions.
The complete question is shown in the file attached below:
Thus, providing free and reduced lunches to low-income students by the government is a situation of positive externality where no directly involved in the market transaction.
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