Individual and institutional investors come together on stock exchanges to buy and sell shares in a public venue. Share prices are set by supply and demand as buyers and sellers place orders. Order flow and bid-ask spreads are often maintained by specialists or market makers to ensure an orderly and fair market.
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Answer:
Which of the following is true if the production of a good gives rise to a positive externality?
The demand curve for the good shifts to the right in the presence of positive externalities.
Explanation:
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It means that excess demand in resource markets will lead to higher resource prices, which will increase costs and direct the economy toward full employment.
Explanation:
An economy’s full employment output is the highest production level when all available resources are used efficiently. It equals the highest level of production an economy can sustain for the long-run. It is also referred to as the full employment production which results in long term supply of the finished good.
When there is increased demand then eventually there will be an increase in the price and also costs of the production which leads the economy towards the full employment output as it is a sustainable output.