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Airida [17]
3 years ago
13

Externalities and Public Goods - End of Chapter Problem

Business
1 answer:
Nuetrik [128]3 years ago
7 0

Answer:

LaShawn's neighbor mows his lawn during the night.

DEPENDING ON HOW OFTEN LASHAWN'S NEIGHBOR MOWS HIS LAWN, A PRIVATE BARGAINING MIGHT BE USEFUL. IF THIS HAPPENS ONCE A MONTH, THE NEED OF INTERVENTION IS NOT SIGNIFICANT. BUT IF THIS HAPPENS MORE OFTEN, PROBABLY THEN BOTH MEIGHBORS WILL NEED TO BARGAIN AN OPTIMAL SOLUTION.

Opening an Apple store in a mall causes  overall sales in the mall to increase by 10%.  

THIS IS A POSTIIVE EXTERNALITY, THEREFORE, ANY TYPE OF INTERVENTION WILL PROBABLY MAKE THE SITUATION WORSE.

The production of steel results in  pollution that affects millions of  residents in the surrounding area.

IN THIS CASE, YOU NEED GOVERNMENT INTEREVENTION. POLUTION IS SOMETHING THAT AFFECTS THE GEENRAL PUBLIC, THEREFORE, IT MUST BE ADDRESSED BY THE EPA. IN CASE THE EPA AND OTHER GOVERNMENT INSTITUTIONS DECIDE TO DO NOTHING, THEN YES, PRIVATE BARGAINING WILL PROBABLY BE NECESSARY.

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Outstanding stock of the West Corporation included 40,000 shares of $5 par common stock and 10,000 shares of 5%, $10 par non-cum
Assoli18 [71]

Answer:

Dividend paid = (5%× 10,000 × $10) = $5000.

Explanation:

<em>Preference shares entitles the holders to  participate in a fixed dividend out of the profit made by the company. The divide is always a fixed percentage of the nominal value of the preference shares</em>

It can be cumulative and non-accumulate.

Cumulative <em>simply implies that should the company misses the payment of dividend in a particular year such unpaid dividend would be carried carried forward and paid in arrears in the following year/</em>

Non-cumulative i<em>s the exact opposite of the case . Here, unpaid dividends are not paid in arrears in fact such are forfeited for life.</em>

Dividend in Year 1

Dividend paid in Year 1 was $ 4000 but ought to be $5,000 (5%× 10,000 × $10). An arrear of $1000

Dividend in Year   2

Dividend paid = (5%× 10,000 × $10) = $5000.

Note that the unpaid dividend of $1,000 in year 1 is lost forever

3 0
3 years ago
Melinda wants to set aside money for a long-term savings goal. She hopes to deposit
babymother [125]

Answer:

future savings

Explanation:

because at the end of the 5year saving she will be able get more interest on her saving

8 0
3 years ago
The steady growth line best supports which conclusion about the economy
Nadusha1986 [10]

Answer:

A.The economy as a whole continues to grow between each business cycle.

Explanation:

The steady growth line best supports the conclusion about the economy

represented in the graph is that "The economy as a whole continues to grow between each business cycle."

The above statement is true because the production output of the firm continues to rise with time. As time goes on in the business cycle of the firm, the firm continues to grow, which is evident in the increase in the level of production.

5 0
3 years ago
Monetary Policy in Flosserland: In Flosserland, the Department of Finance is responsible for monetary policy. Flosserland has ha
evablogger [386]

Answer:

The correct answer is d) neither the long-run Phillips curve nor the Classical dichotomy.

Explanation:

The answer that best suits the situation described is the Phillips curve in the short term but not in the long term.

The Phillips curve starts from the principle that the amount of money circulating (commonly called "money supply") has real effects on the economy in the short term. In this way, an increase in the money supply would have a beneficial effect on aggregate demand, as citizens will spend more when their nominal wages are increased (known as “monetary illusion”) and a more favorable framework for investment and investment will be created. that the prospects of rising prices will improve the expectations of corporate profits. The improvement in aggregate demand would result in greater economic growth, and this in turn in the creation of new jobs. This is how an inverse relationship between inflation and unemployment is established, expressed graphically by a downward curve.

3 0
4 years ago
A liquid asset can be converted quickly to cash with little sacrifice in its value. Which of the following asset classes is gene
Cloud [144]

Answer:

Real estates are the least liquid of them all

Explanation:

Real estates take considerable time to sell and cash out, making them not to be considered as liquid assets.

The money market refers to trading in very short-term debt investments.The money market deals in short-term loans, generally for a period of less than or equal to 365 days. Money markets are considered as highly liquid assets.

Treasury bills are short-term sovereign debt securities maturing in one year or less . The treasury bill market is highly liquid as investors can quickly convert bills to cash through a broker or bank.

This makes real estates the correct answer as the least liquid asset.

6 0
3 years ago
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