<span>A. Boost the economy
Expansionary policies increase the money in supply to encourage spending, boost economic growth and counteract inflation.</span>
Create a limit on the maximum no. of bottles the firm can make,
The required details about externality is mentioned in below paragraph.
<h3>How Do Externalities Work?</h3>
An externality is a cost or benefit a producer generates but does not personally bear or receive. An externality can result from the creation or consumption of a good or service and can be both positive and negative.
Externalities happen when creating or consuming a good has an effect on parties who are not involved in the transaction directly. Externalities can be either good or bad. They can result from either production or consumption as well. For instance, simply entering a city center will increase the pollution and traffic for individuals who live there.
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Answer: Investment Value
Explanation:
The Investment value of a project is the amount that an investor believes the project is worth to them. There are certain parameters to decide this but the most important is the potential rate of return.
The Potential rate of return tells the investor how much they can expect as returns should they invest in such a project. If it is high, the investment value will be high as well.
Answer:
(D) The cyclical unemployment
Explanation:
Business activity is subject to the comings and goings of private initiative, so the expansion and recession phases of the economy affect the number of unemployed.
<u>Cyclical unemployment</u> increases considerably during times of recession, due to the deterioration of economic conditions; while decreasing in the stages of expansion, due to the improvement of the economy.
Governments try to reduce the incidence of this type of unemployment by softening the transition between different economic cycles. The objective is that the labor supply does not vary significantly between the stages of expansion and recession so that its demand is not excessively impaired.
Answer
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Explanation
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