Answer:
D
Explanation:
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.
Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible
A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.
A public good is a good that is non excludable and non rivalrous. An example of a public good is a statue in a public park 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
Answer:
The correct answer is c. Prospect theory.
Explanation:
Prospective theory belongs to behavioral economics and stands out as an alternative model to the expected utility theory, since the validity of the rational agent's neoclassical assumption is questioned. This theory was developed by Nobel laureate Daniel Kahneman and his collaborator Amos Tversky in his »Prospect Theory: An Analysis of Decision under Risk” (1979). They used the results obtained from both his own empirical observations, as of several experiments.
Individuals set preferences based on a specific situation and circumstances, rather than in absolute terms. This means that depending on their initial situation, agents will act in one way or another. One of the results of this reasoning leads to behavioral asymmetries between situations of possible losses or gains. Individuals, for example, are generally more risk averse than profit lovers. An endowment effect is also derived from this analysis, since the compensation required by someone to dispose of a good is greater than what they would be willing to pay to acquire it.
-Individuals involved in the conflict is encouraged to come together.
-Every individual involved in the conflict expresses his or her opinion in an open manner.
-Every individual involved in the conflict is encouraged to offer a solution.
-Discuss all the solutions and decide on the one that satisfies everyone.
<span>Optimal procurement: input well-defined and measurable quality ... A type of exchange that occurs when the parties to a transcation have made specialized investments. .... make spot exchange an unattractivemethod of procurement due to ...</span><span>
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Answer:
B, corporate citizenship
Explanation:
Corporate citizenship also know as corporate social responsibility is defined as the contribution or impact or effect of a company's/organization's/firm's business has on its local community or the society as whole. This involves the company/firm investing in its community as a form of giving back to the community asides from the company's business interests.
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