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2 years ago

Which of the following generate the type of externality previously described?

Business

1 answer:

otez555 [7]2 years ago

7 0

Answer:

Positive externality

Negative externality

positive externality

negative externality

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

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Sumner sold equipment that it uses in its business for $32,000. Sumner bought the equipment a few years ago for $79,000 and has

astra-53 [7]

Answer:

Loss= $7,500

Explanation:

First, we need to calculate the book value of the equipment:

Book value= purchase price - accumulated depreciation

Book value= 79,000 - 39,500

Book value= $39,500

If the selling price is higher than the book value, the company made a profit by selling the equipment.

Gain/loss= selling price - book value

Gain/loss= 32,000 - 39,500

Loss= $7,500

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2 years ago

Many employment contracts have mandatory arbitration clauses. False True

tensa zangetsu [6.8K]

This answer is True

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2 years ago

What should you do if you think that a bill is wrong or want more information about it?

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You should inquire.

If the bill is incorrect, this could be a cause of fraud or a simple calculating error. The same could apply for you wanting more information - the supplier should be able to provide you information about it.

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2 years ago

Jack’s Snow Removal Company received a cash advance of $14,700 on December 1, Year 1 to provide services during the months of De

Ipatiy [6.2K]

Answer:

d. increase equity by $4,900

Explanation:

Jack Snow received $14,700 on December 1 for services to be rendered in December, January and February. It will not be recorded as income because it hasn't been earned.

Adjusting entries will be passed at the end of each month to recognise amount earned.

Since it is for 3 months, monthly amount earned = 14,700/3= $4,900

At December 31 Retained earnings will be credited for $4,900.

Retained earnings is part of owner's equity.

So equity will increase by $4,900

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2 years ago

"A potential client is 81 years old and has asked his representative for recommendations of speculative "Dot Com" stocks. The cu

torisob [31]

Answer:

allocate a portion of the customer's portfolio to "Dot Com" stocks that will not reduce the customer's retirement income below the amount needed for comfortable living

Explanation:

Given that the potential client is concerned that his purchasing power is decreasing and wishes to allocate an increased portion of his portfolio to aggressive growth stocks.

Hence, the best recommendation is to "allocate a portion of his portfolio to "Dot Com" stocks that will not reduce his retirement income below the amount needed for comfortable living"

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2 years ago