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victus00 [196]
3 years ago
6

Which of the following statements are true regarding​ externalities? ​(Check all that apply​.) A. Deadweight loss can be either

a foregone benefit or the total cost of the externality to society. B. In the case of an​ externality, the free market will maximize social surplus. C. For computing efficient​ outcomes, economic agents adjust the demand curve to account for negative externalities. D. A negative externality occurs when an economic activity has a spillover cost to a bystander.
Business
1 answer:
ella [17]3 years ago
6 0

Answer:

d

Explanation:

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 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

Coase theorem has been proposed as a solution to externality. According to this theory, when there are conflicting property rights, bargaining between parties involved can lead to an efficient outcome only if the bargaining cost is low

Another solution to negative externality is through the activities of charities. Charities can raise donations to limit or regulate the activities of firms that constitutes a negative externality.

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Clarksen Company uses a process costing system. The company requisitioned $93,000 of materials for Department A and $67,000 of m
VashaNatasha [74]

Answer:

The correct journal entries should be:

Department A:

Dr Work in progress inventory 93,000

    Cr Raw materials inventory 93,000

Department D:

Dr Work in progress inventory 67,000

    Cr Raw materials inventory 67,000

Explanation:

Raw materials is an asset account with a debit balance, and since we must decrease it, we have to credit the amounts. Work in progress (WIP) inventory is an asset account so it has a debit balance.

6 0
3 years ago
A structure was built five years ago. Because of exceptional upkeep, the appraiser estimates the structure's condition today to
frosja888 [35]

Based on the useful life and the appraised age of the house, the effective age is <u>3 years.</u>

<h3>What is the effective age?</h3>
  • It is the age of a structure based on its physical condition and upkeep.
  • It is found by subtracting the remaining economic life from the economic life of the structure.

As a result of the physical condition and upkeep of the property, the appraiser estimates it to be equivalent to a 3 year old home. This is therefore the effective age.

Find out more on appraisals at brainly.com/question/15032807.

6 0
2 years ago
According to the time-driven model of leadership, _____ styles are reserved for decisions where employee commitment is unimporta
stich3 [128]
According to the time-driven model of leadership, autocratic leadership styles are reserved for decisions where employee commitment is unimportant. 

Autocratic is also known as authoritarian leadership where one or a few people are in control of the entire organization and everyone else has little say on how things are done. This works well at times because of the strong power from the leader(s) but it often creates hostility in the workplace. 
7 0
3 years ago
If the consumption of a good generates positive externalities, then which of the following is correct? The government can subsid
vekshin1

Answer:

Both of these answers are correct.

Explanation:

Positive externality is when the benefits of economic activities to third parties exceeds its cost.

Activities that generate positive externality are

1. Education

2. Research and development

To encourage activities that have positive externality, government can subsidise such activities. Subsidies makes the activity cheaper and incentivise people to carry out such activities.

Market forces may lead to an underallocation of resources to producing the good. Therefore, the government might intervene in the allocation of the resources to increase efficiency.

I hope my answer helps you.

4 0
3 years ago
7. As you track your progress, you'll act, observe, adjust, and then
IRISSAK [1]

Answer:

A. Act Again

Explanation:

In business, tracking a progress is made to ensure that you make a constant improvement within your operation.

During the observation process, you'll notify the things that can either become a hindrance or improvement to your operation. During the adjustment process, you'll eliminate the hindrance and add the things that can become the improvement into the plan.

After both of these were done, you need to act to execute the plan and check the progress again. This will form a cycle that you need to do throughout the operation.

8 0
3 years ago
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