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.
Three essential <span>principles of test construction are:
1. consistency. It refers to the consistency </span><span>between the goal of the subject, course, and the methods of teaching goals. Also consistency between the methods and what the test measures. </span><span>
2. validity. Validity refers to t</span>he ability of a test to measure what it was designed to measure. It can be material od skill.
3. reliability. The <span>test must be constructed in such a way that it will produce reliable, consistent results .</span>
Answer: Product development is the complete process of delivering a new product or improving an existing one for customers. The customers can be external or internal within a company.The objective is to ensure that the new or enhanced product satisfies a real customer needs
Explanation:
Answer:
B. shifts rightward, and the point at which the PPF touches the good-X axis has to be something more than 40 units of good X and the point at which the PPF touches the good-Y axis has to be something more than 60 units
Explanation:
PPF is the graphical representation of two goods combinations which an economy can produce given resources & technology.
It is downward sloping because of two goods inverse relation given same resources & technology.
The points at which PPF touches both axis represents maximum amount of that axis good which can be produced by given resources & technology , Points on PPF reflect full efficient utilisation of resources. Points inside PPF reflect underutilisation of resources. Points outside PPF reflect unattainable combinations outside economy's productive capacity, given resources & technology unless either of them grow.
Resource increase usable for production of both goods: shifts the PPF outwards/ rightwards & the maximum potential production of both goods increases. PPF touching axis points increases from pervious at each axis - more than 40 at good X axis, more than 60 at Y axis.
Answer:
$3 loss
Explanation:
Given that
Selling value of an asset = $60
Spot price at that time = $58
The Spot price in one year = $63
So, the now the gain or loss for one year would be
= Selling value of an asset - Spot price in one year
= $60 - $63
= $3 loss
Since we have to find out for one year so we considered the price for one year i.e selling price and the spot price
