Answer:
A negative externality is a cost that a third party incurs from someone else's economic activity. When the third party experiences a beneficial effect, it is called a positive externality.
Requires the government to impose a tax.
EX:
Your roommate, Dmitri, has bought a bird that keeps you up at night with its chirping.
The local airport has doubled the number of runways, causing additional noise pollution for the surrounding residents.
Explanation:
Answer:
Framing effects.
Explanation:
Framing effect in psychology is the cognitive bias whereby an individual makes decisions based more on the information presented than on one's own choice. In other words, when someone makes a decision that is influenced more by the effects of the information on others than on one's own opinions.
In the given scenario, Josh's decision to have tiramisu only when others are having dessert and not if he would be the only one having dessert is affected by the framing effect. This is because his decision is influenced by the way others behave rather than his desire to eat even his favorite dessert.
Thus, the correct answer is the framing effect.
Answer:
Alternative I: (Extra dividend)
Price per share is $ 46.20
Shareholder wealth per share is $ 42.40
Alternative II: ( Share repurchase)
For share repurchase, the price per share and the shareholder wealth is equal to the stock price.
Explanation:
Alternative I: (Extra dividend)
Amount spent = $19,000
Outstanding shares = 5,000 shares
Stock price = $50
Price per share = Stock price -
= $50 - = $50 - $3.8
= $ 46.20
Shareholder wealth per share = Price per share -
= $46.20 - $3.8
=$ 42.40
Alternative II: ( Share repurchase)
For share repurchase, the price per share and the shareholder wealth is equal to the stock price.
Answer:
A) The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy.
Explanation:
Higher unemployment inevitably leads to a decrease in the standard of living. We don't have to go back to the great depression to realize that high unemployment increases poverty, we only need to look back 12 years ago during the Great Recession. As the economy collapsed, the housing bubble bursted, and the financial sector was in shock, unemployment rate increased dramatically. Most people need to work in order to have a decent living, unless they are extremely rich and can afford not doing so.
Currently the US economy's unemployment is around 4%, which is considered a full employment level, since there will always be some frictional unemployment even when the economy is growing steadily.