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2 years ago

An externality is an unwarranted cost or benefit that affects...

Business

1 answer:

Makovka662 [10]2 years ago

3 0

Answer:

a third party

Explanation:

A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.

In Economics, an externality could either be positive or negative depending on its effect on a third party.

A positive externality arises when the production or consumption of a finished product or service has a significant impact or benefits to a third party that isn't directly involved in the transaction.

On the other hand, a negative externality arises when the production or consumption of a finished product or service has a negative effect and/or impact (cost) on a third party.

This ultimately implies that, an externality is typically an unwarranted cost or benefit by a manufacturer or producer of goods and services that affects a third party.

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Select the items that describe how business investments can cause economic growth.

NikAS [45]

Investments can lead to more demand for goods. Investment means an increase in capital spending and is a component of Aggregate Demand (AD), if there is an increase in investment it will help to boost AD and therefore economic growth.

4 0

2 years ago

Suppose that a manager is interested in estimating the average amount of money customers spend in her store. After sampling 36 t

densk [106]

Answer:

The store manager is 95% confident that the average amount spent by all customers is between $ 31.84 and $ 38.66.

Explanation:

In statistics, a confidence interval is the probability that the parameter of a population lies between two set of values when a random sample of the population is drawn for a specific percentage of times. This means that the confidence interval is formed about the whole population not the sample from which it is calculated.

The probabilities of a confidence interval can take any number, but 95% and 99% confidence level that are usually used.

It should be noted that, for example, 95% confidence level implies that there is a 95% chance that the true mean of the population lies within the calculated confidence interval.

Therefore, the statement which gives a valid interpretation of the interval in the question is the first one which states that "the store manager is 95% confident that the average amount spent by all customers is between $ 31.84 and $ 38.66."

I wish you the best.

4 0

2 years ago

A production possibilities frontier identifies the dollar cost of producing a good or service in an economy. True or False

belka [17]

Answer:

A production possibilities frontier identifies the dollar cost of producing a good or service in an economy.

True

Explanation:

Cost of producing could be envisaged through budgeting where the variable cost, fixed cost and total cost is expected to be calculated either through rough estimate.

3 0

2 years ago

Critically explain Robbins definition of economics?

arlik [135]

Answer:

In his landmark essay on the nature of economics, Lionel Robbins defined economics as. “the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”

Explanation:

4 0

2 years ago

If in the economy, business saving equals $240 billion, household saving equals $15 billion and government saving equals -$150 b

Marrrta [24]

Answer:

$105 billion

Explanation:

We know that

The national saving equal to

= Private saving + public saving

where,

Private saving = Business saving + household savings

=$240 billion + $15 billion

= $255 billion

And, the public saving would be -$150 billion

So, the national saving would be

= $255 billion - $150 billion

= $105 billion

6 0

2 years ago