A positive externality arises when a third party, outside the market transaction, fails to allocate resources efficiently O Pays less for the good or service O benefits from a market transaction
Q: Negative externalities lead markets to produce greater than efficient output levels and positive…
A: Externalities are the costs or benefits that affect a party who did not choose to incur that cost or…
Q: QUESTION 13 Price Quantity Demanded Quantity Supplied 10 2 million 9 4 8 6 6 5 10 12 20 million 16…
A: Price Ceiling:A price ceiling is a government -imposed maximum price that can be charged for a…
Q: A monopoly that is maximizing profits operates in the ________ portion of the demand curve. A)…
A: Marginal Revenue:Marginal revenue is the additional revenue generated by selling one more unit of…
Q: The graph depicts a monopolistically competitive firm at equilibrium. Dollars ($) 90 80 65 55 50 MC…
A: The monopolistic competitive firm offers products to consumers at a competitive price. However, the…
Q: Choose which of the following will cause the demand curve for product X to shift to the left?
A: A demand curve is a graphical representation of inverse relationship between price and quantity…
Q: A basic World Trade Organization (WTO) principle is that trade barriers Multiple Choice O can be…
A: Most Favored Nation (MFN) :MFN treatment is a principle in international trade that requires a…
Q: What information does the Human Development Index (HDI) give about countries in 2018? A.…
A: Economic growth, stability, and the dynamics of international trade all hold pivotal positions in…
Q: The following graph is the production possibilities curve of a nation. Drill Presses 10 098765432 A…
A: PPF is the production possibility frontier. PPF shows the production possibility of two goods in an…
Q: If there is an increase in the incomes of consumers, the demand for product Z: Multiple Choice will…
A: The demand of the individual for a good or service is the demand. The demand curve of a good shifts…
Q: Recently the U.S. government filed a complaint with the World Trade Organilation (WTO) that the…
A: Tariff:It is a type of tax imposed by the government on imported goods in the country. The…
Q: If the marginal product of labor is less than the nominal wage divided by the price of output, a…
A: Marginal Product of Labor: The marginal product of labor is the additional output or production that…
Q: The total cost a power plant ($/megawatts) to produce electricity is Y=12+1.3X+0.24 X2 , where X is…
A: A firm maximizes profit by producing output at a level where Marginal Revenue is equal to Marginal…
Q: Compared to market equilibrium, when there is a shortage a - consumer surplus is decreased and…
A: Shortage in the market occurs when the quantity demanded is more than the quantity supplied.
Q: Jabari's HookNLadder is the only company selling fire engines in the fictional country of…
A: Marginal Revenue is the additional revenue that the firm earns from sale of one additional unit of…
Q: Refer to Figure 5-4. Suppose the government imposes a rent-controlled price of $800 per month on…
A: Shortage is a market situtation when quantity supplied is lower than quantity demanded at a…
Q: Sofia, a political science student, thinks that the government should in reasons, can resolve the…
A: Coordination Problem:A coordination problem refers to a situation where individuals or agents in a…
Q: The Beveridge Curve shows that cyclical hiring means that when the unemployment rate is…
A: Beveridge Curve: A graphical representation illustrating the inverse relationship between the…
Q: Consider an economy described by the aggregate production function: Y=F(KL)=K0.5 10.5, the…
A: The aggregate production function is given as K is the capital invested and L is the labor invested.…
Q: Suppose that Julia receives a $20 gift card for the local coffee shop, where she only buys lattes…
A: Price of muffins $2Price of latte is $4Gift cards of $20
Q: What combination of changes in supply and demand would most likely increase the equilibrium…
A: The demand curve shows an inverse relationship between price and quantity demanded. Demand is a…
Q: An increase in consumer surplus is caused by O a price floor. O a price ceiling. A higher…
A: It is defined as the difference between the maximum willingness of the consumer to pay and the price…
Q: Coffee and tea are substitutes. Suppose a typhoon destroys half the tea trees of a country, but does…
A: Market dynamics refers to the constantly changing relationship between supply and demand, price…
Q: 4. Elastic, inelastic, and unit-elastic demand The following graph shows the demand for a good.…
A: The concept of elasticity of demand focuses on measuring the responsiveness of consumers to…
Q: An increase in the demand for gasoline O leads to an increase in consumption and potential GDP.…
A: Potential Gross Domestic Product (GDP), which means potential output or full-employment GDP, is an…
Q: Equilibrium price in this market is Multiple Choice $1. $4. $2. $3.
A: Demand curve represents the quantity demanded corresponding to different price level. It is downward…
Q: 5. Interest, inflation, and purchasing power Suppose Dariya is a fashionista and buys only denim…
A: Inflation is the sustained rise in the general price level of goods and services in an economy over…
Q: A firm with market power has an individual consumer demand of Q = 20 − 2P and total costs of C = 3Q.…
A: The monopoly market structure is defined as the single seller of a good fixing its own price based…
Q: a) decrease in demand. Price b) increase in quantity demanded. c) increase in demand. E Refer to…
A: In a free market, the equilibrium price and equilibrium quantity is determined by the forces of…
Q: Suppose a firm decided to leave a high-cost/ high-tax state like California to reloacte to a…
A: The economies of scale are defined as the cost advantage earned by a firm. A firm increases its…
Q: The following graph plots a supply curve (orange line) for a group of recent graduates looking to…
A: Producer surplus is the benefit a seller gets by selling its output at price higher than its minimum…
Q: (Ch 7) Suppose a standard normal random variable has an 80 percent chance falling in an interval…
A: Find the value of z such that a standard normal random variable has an 80 percent chance of falling…
Q: The saving schedule is drawn on the assumption that as income increases, Select one: a. saving will…
A: A savings schedule is a table or graph that represents the relationship between different levels of…
Q: If the compensated (Hicks) and Marshallian demand curves for a good intersect, at that point the…
A: Demand Curve:The demand curve explains to us the quantity of a product demanded by a consumer…
Q: Wage $7.25 $6.50 A E B D 45,000 70,000 85,000 S=MC D=MB Minimum wage a (number of workers) The…
A: The lowest legally legislated hourly or monthly compensation that an employer is required to pay to…
Q: The market has demand and supply curves represented by: P = 15 +0.002Q P = 300 -0.003Q If the price…
A: Demand Curve: It is the graphical way of showing the relationship between the quantity demanded and…
Q: The marginal rate of substitution is the slope of an indifference curve. True False
A: Marginal Rate of Substitution :The MRS is the rate at which a consumer is willing to give up some…
Q: The following table displays the marginal costs (MC) of Les, the sole producer in the market, and…
A: The price floor refers to imposition of a limit on price by government i.e. on how low a price can…
Q: suppose the wealth effect is such that a $10 change in wealth produces a $2 change in consumption at…
A: Macroeconomic theories pertaining to wealth delve into its dispersion, accrual, and its…
Q: If firms in a competitive market are not identical, then the long-run market supply curve will be OA…
A: The long-run supply curve depicts the correlation between the quantity of a good or service supplied…
Q: Suppose the market is in equilibrium. Then the government imposes a per unit tax in the market.…
A: The demand curve is the downward sloping curve.Supply curve is the upward sloping curve.Equilibrium…
Q: In 1996, Florida voted on (and rejected) a $0.01-per pound excise tax on refined cane sugar in the…
A: Demand is the amount that consumers wish to buy, whereas supply is the amount that producers are…
Q: A small country can import a good at a world price of 10 per unit. The domestic supply curve of the…
A: The relationship between a product's change and the degree to which it is demanded by customers is…
Q: How is the rental price of a Smart car impacted, if at all, by gas prices?
A: Rental price, generally called rent or rental rate, suggests how much money that an individual or…
Q: The total amount of consumer surplus and producer surplus is at its maximum when A. consumers and…
A: The continually shifting link between supply and demand, price adjustments, and consumer behavior is…
Q: If the United States is currently importing 14 million barrels per day at a world price of $4.00 per…
A: A country imports the difference between quantity demanded and quantity supplied at the world price…
Q: a. b. C. Write down the profit maximization for firm i, i = 1, 2, 3, 4. Write down the first-order…
A: The Cournot game is used to describe an industry structure in which companies compete on the amount…
Q: Kazakhstan is a grape producer, as well as an importer of grapes. Suppose the following graph shows…
A: Deadweight loss signifies the welfare loss experienced by the economy due to the inefficient…
Q: labor and capital in the four ways shown below. Assume the prices of labor and capital are $2 and…
A: Price of product A = $0.50Quantity produced = 20 unitsprice of labor = w = $2price of capital = r =…
Q: Refer to the graph below. A $6.95 B) $3.25 C) $4.45 D) $4.85 E $5.45 F) $4.95 PRICE Select the…
A: The demand curve is the downward sloping curve. Supply curve is the upward sloping curve.…
Q: While GDP includes tangible goods such as books and bug spray, it excludes intangible vers provided…
A: The total monetary or market worth of all the finished goods and services produced within a nation's…
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- Which of the following is an example of a positive externality?A. Pollution from a factoryB. Noise from a construction siteC. Vaccinations reducing the spread of diseaseD. Traffic congestion in a cityUsing deforestation as an example explain negative externalitiesWhich of the following is an example of a positive externality? A. Pollution from a factory B. Noise from a construction site C. Vaccinations reducing the spread of disease D. Traffic congestion in a city
- When negative externalities are present in the production of car tyres, the marginal social cost of producing tyres. Jika kesan luaran negatif wujud dalam pengeluaran tayar kereta, kos sosial marginal pengeluaran tayar a. equal the marginal benefit received by consumers if competitive markets exist and there is no government intervention adalah sama dengan faedah marginal yang diterima oleh pengguna jika wujud pasaran yang kompetitif dan tiada campur tangan kerajaan b. equals the marginal cost borne by the firm minus the marginal external cost resulting from the production and consumption of the good adalah sama dengan kos marginal yang ditanggung oleh firma tolak kos luaran marginal hasil daripada pengeluaran dan penggunaan barang c. equals the marginal cost borne by the firm plus the marginal cost borne by third parties from the production and consumption of the good adalah sama dengan kos marginal yang ditanggung oleh firma ditambah dengan kos marginal yar ditanggung oleh pihak…An externality is the impact of: a. None of the answers is correct. b. one person’s actions on the well-being of another person c. a person’s actions on his well-being.Does the following activity or event create an extemality? If it does, is it an external benefit or external cost and does it arise from production or consumption? An increase in the number of people who are studying for graduate degrees creates A person who wears strong perfume to class creates, Airplanes taking off from LaGuardia Airport during the US. Open tennis tournament nearby create A sunset over the Pacific Ocean creates OA. an external cost arising from production; no externality B. an external benefit arising from consumption; an external benefit arising from consumption OC. an external cost arising from consumption; no externality D. an external benefit arising from production; an external benefit arising from consumption OA. an external benefit arising from production; an external cost arising from production оооо B. an external cost arising from consumption; an external benefit arising from consumption OC. an external cost arising from production; an external benefit…