1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Gelneren [198K]
3 years ago
6

The privately-owned school system in Smalltown has a virtually unlimited capacity. It accepts all applicants and operates on bot

h tuition and private donations. Although every resident places value on having an educated community, the school's revenues have suffered lately due to a large decline in private donations from the elderly population. Since the benefit that each citizen receives from having an educated community is a public good, which of the following would not be correct?
a. The free-rider problem causes the private market to undersupply education to the community
b. The govemment can potentially help the market reach a socially optimal level of education.
c. A tax increase to pay for education could potentially make the community better off.
d. The private market is the best way to supply education.
Business
1 answer:
oksian1 [2.3K]3 years ago
6 0

Answer:

A

Explanation:

The privately-owned school system in Smalltown generates  positive externality to members of SmalltownA 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.

The free rider problem is a form of market failure. It occurs when people benefit from a good or service of communal nature and do not pay to enjoy these services.

The free rider has caused a decline in revenues and did not cause the private market to undersupply education to the community

You might be interested in
Multiple Product Performance Report Storage Products manufactures two models of DVD storage cases: regular and deluxe. Presented
Pavlova-9 [17]

Answer:

<u>Flexible budget performance report for the July manufacturing activities</u>

Direct Materials :                                         $62,000

Lumber :

Regular ($6.00 × 5,000) $30,000

Deluxe ($9.00 × 2,000) $18,000

Assembly kit :

Regular ($2.00 × 5,000) $10,000

Deluxe ($2.00 × 2,000) $4,000

Labor :                                                            $30,000

Regular ($4.00 × 5,000) $20,000

Deluxe ($5.00 × 2,000) $10,000

Variable overhead :                                      $15,000

Regular ($2.00 × 5,000)  $10,000

Deluxe ($2.50 × 2,000)   $5,000

Fixed manufacturing overhead                  $13,000

Total                                                             $120,000

Explanation:

A Flexed Budget is a Master budget that has been adjusted to reflect the Actual Level of Operation.

8 0
3 years ago
The __________ is based on all the goods and services produced in the economy, which make it a current-weights index. eco203
podryga [215]

Answer:

The __Paasche Index or Current-Weighted Index_______ is based on all the goods and services produced in the economy, which make it a current-weights index.

Explanation:

The Current-Weighted Index is an index that calculates the weighted average of prices or quantities or with the weights used proportionate to the quantities or prices of the goods.  At regular intervals, the weights have to re-calculated in line with the current realities.  This regular re-calculation of the weights, which is the basis for its name, makes it current.

8 0
3 years ago
Greenwell Farm Equipment sells a tractor to Farmer for $130,000 on January​ 1, 2019. The tractor is delivered that day. Greenwel
agasfer [191]

Answer:

Present value of interest is $5,062 and future value is $5,796        

Explanation:

The formula for finding the Present value of the interest reported as revenue is calculated as under:

Present Value of $40,000 receivable in 2 years = $40,000 / (1+7%)^2

Present Value of $40,000 receivable in 2 years = $34,938

The difference of the future value receivable and present value of the future amount receivable is the interest's present value which is given as under:

Interest Present value = $40,000 - $34,938 = $5,062

Using the compounding formula, the future value of the interest that will be recorded in the financial statement will be = $5,062 * (1 + 7%)^2 years

Future value of interest = $5796

7 0
3 years ago
Five hundred units of good x are currently bought and sold. The marginal buyer is willing to pay $40 for the 500th unit, and the
dimaraw [331]

Answer:

D : All options are correct

Explanation:

- The marginal buyer is the essence of demand curve while marginal seller is essence of supply curve.

- @ Q = 500 units,    Selling Price is set at SP = $35

- @ Q = 500 units,    Buying Price is set at BP = $40

- Since, SP ≠ BP our equilibrium price would be $ 37.5 assuming the price elasticity of demand and supply are equal. In any case the equilibrium price would lie in between [ 35 , 40 ] such that to prevent a shortage of units in near future.

- Moreover, if the seller decides to sell at price $35 then he must sell goods greater than 500 units to reach the equilibrium profits. However, it could also lead to excess of units or surplus.

- We see that from selling the goods at SP = $35 while the buyer is willing to pay BP = $40 for 500 goods, the seller would be under-profiting and would be earning $5*500 = $2,500 less than he would at equilibrium price of $40 and selling units greater than 500. Hence, 500 goods is not an efficient quantity of goods.

6 0
3 years ago
List one thing you SHOULD do if your car loan suddenly becomes too expensive.
Sphinxa [80]

Answer:

Modify Your Auto Loan.

Refinance Your Vehicle Loan.

Trade-in Your Car.

Let Someone Else Assume Your Loan.

Sell Your Vehicle.

Turn the Keys In.

Let Your Car Be Repossessed.

File for Bankruptcy.

5 0
2 years ago
Other questions:
  • Which is better,FBISD or Alief ISD (only 1 answer)
    13·1 answer
  • "what is the first stage of the marketing research process?"
    15·1 answer
  • Suppose a project is subject to the following risk events (each with a given probability of occurring and a cost associated with
    10·1 answer
  • Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales $ 360,000 Beginning m
    15·1 answer
  • Investing in a global stock fund is a good idea to:
    12·1 answer
  • Which of the following investment choices is least risky?. . A.Flipping. B.Renting. C.CDs. D.Bonds. .
    8·2 answers
  • At December 31, 2016, House Co. reported the following information on its balance sheet.
    15·1 answer
  • Downward Dog Wines had to market its products with a different name in a foreign market as it was mandatory to translate the nam
    11·1 answer
  • The following expenditures were incurred by Tamarisk, Inc. in purchasing land: cash price $74,000, accrued taxes $4,400, attorne
    5·1 answer
  • Which type of technology in criminal intelligence do you think poses the highest risk of infringing our individual rights? Why?
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!