Answer:
Because the government can use her sovereign power to both mitigate negative externalities as well as encourage positive externalities.
Explanation:
A positive externality occurs when the transaction between a producer and end user benefits a third party that did not take art in the process.
A very Good example is Education. There is a third party benefit to the society when we have more educated citizens.
A negative externality happens when the business transaction between a manufacturer and consumer affects a third party adversely. a typical example is cigarettes. When cigarettes is consumed by the end user, the smoke can affect the health of a third party that was not part of the initial transaction.
To deal with both positive and negative externalities, government intervention is very crucial.
Government encourages positive externalities like education by subsidizing the cost of attending a school. They also enact laws that make basic education compulsory.
In the case of negative externalities, Government can intervene with a ban on producing harmful goods and also set a legislation about smoking in public laces to mitigate the health complications caused by third party inhalation.
Answer:
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Answer:
analyzer
Explanation:
This strategy is used by companies wishing to gain market share. It is a moderate aggressive strategy, as it presents low aggregate risks, and innovation is not a very relevant factor in companies that use the analyzer strategy. Companies seek to provide a production of goods already in the market, with modifications and differentiations.
Answer:
a.
- The quality of goods available to consumers
- The costs of air and water pollution
- The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government
b. investment; decreases; no overall change
Explanation:
a. GDP only measures goods that have monetary value so when a good cannot be properly quantified in terms of cash, it is difficult to account for it in GDP. Also, even if the good has monetary value for the Government was unaware of it, they will be unable to use it in the calculation of GDP.
For these reasons, the quality of goods available to consumers, the costs of air and water pollution and the value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government will not be a part of GDP calculation.
b.<em> When a U.S. company purchases and imports wood from Brazil to use to build new houses within the United States, this purchase increases the </em><em><u>investment</u></em><em> component of GDP while also </em><em><u>decreasing</u></em><em> net exports by the same amount. Therefore, the purchase of wood from Brazil causes </em><em><u>no overall change </u></em><em>in US GDP. </em>
Purchasing raw materials for use in production is considered Investment by GDP. However, since it was imported it will reduce Net Exports which means that the transaction would cancel itself out in the GDP calculation as it would both increase investment and decrease Net exports by the same amounts.
Answer:
d. Straight-line.
Explanation:
Depreciation: Depreciation is an expense indicating a reduction in the value of fixed assets due to tear and wear, obsolescence, usage, time period, etc. It is shown on the income statement debit line. It is a non-cash item not impacting the cash balance.
In the straight-line method, the depreciation expense would be lowest in this method and it remains the same for the remaining useful life
In the double-declining method, the depreciation rate is doubled and contain the highest value
In the sum of the year digit, we sum the useful life like 5 years so we sum 5+4+3+2+1 = 15 years and divide it to the useful life i.e 5
In the composite or group, the depreciation is taken for the group, not for the individual company
