Explain positive and negative externalities with the help of examples?

Q: Refer to Figure 8-5. Assume the tax was levied on the producer. Which area represents the reduction…

A: Taxation is the main source of revenue that governments receive. As a result of the customer paying…

Q: The overnight loan's rate is Select one: a) equal to the prime interest rate minus the Bank of…

A: What is an overnight loan rate? An overnight loan rate is distinguished by the interest rate at…

Q: 2. Classify the following as a government- enforced barrier to entry, a barrier to entry that is not…

A: Classification of barriers to entry: Barriers to entry in some industries or markets refer to a…

Q: Expansionary monetary policy may prevent deep recessions with uncertain long-term consequences.…

A: Expansionary monetary policy: When a central bank raises money supply through an open market…

Q: What will be the M2 if M1 is 630 and deposit with post office saving bank accounts is 480.

A: M2 is an order of money supply. It incorporates M1 which is comprised of the cash money beyond the…

Q: According to the chapter 1 of Healey's book, economics and the movement of jobs and opportunity from…

A: The easiness with which workers can shift around between and within economies is known to as labour…

Q: Define externality and it's importance.

A: A cost or benefit that is not included in the cost of a commodity or service is known as an…

Q: Black Box Cable TV is able to purchase an exclusive right to sell a premium movie channel (PMC) in…

A: In economics, deadweight loss arises when demand and supply are not in equilibrium, which results to…

Q: Refer to Figure 3. Assume a monopolistic competitive environment: From the 4 graphs depicted, which…

A: The firms are motivated to enter a market only if there are profits in the market in the short run .…

Q: 1. According to Bentham's utilitarianism approach, the purpose of a policy is: (A) the greatest…

A: Since you have asked multiple question, we will answer first question for you. If you want any…

Q: 6.11 Explain why there can never be a No-Show Paradox in an election using the following voting…

A: Voting is a political act that has been described in a variety of ways. According to a sociological…

Q: CES (Constant Elasticity of Substitution) production function is given as; Q = A[8K P+(1-8)L-P]-¹/P…

A: "Since , multiple question have been asked by you , we will solve first question for you. Please…

Q: When you deposit money in a bank, most of the money O could be lost if your bank failed. O is used…

A: The required reserve ratio is set by the Central bank of the nation.  Every commercial bank has to…

Q: Just confirming the ans dont copy  Which characteristic of the indifference curve explains that…

A: An indifference curve, in essence, is a combination of two things in a variety of ratios that gives…

Q: One of the central features of all macroeconomic models is that money is neutral in the long run.…

A: Investment Savings (IS) and Liquidity Preference-Money Supply (LM) are the two components of the…

Q: Plants A and B emit 12 tons and 6 tons of carbon dioxide (CO2), respectively. MAC(marginal…

A: Given that; There are two Plants A and B A emits 12 tons of carbon dioxide B emits 6 tons of carbon…

Q: Q3. A consumer with the utility function U(₁,2) = xx and her income $200 faces the market prices…

A: To find the tax revenue, we have to multiply the tax with the total quantity demanded

Q: A 12 percent semiannual coupon bond matures in 9 years. The bond has a face value of $1,000 and a…

A: The yield to maturity (YTM) of a bond is the total return when held to maturity. A long-term bond's…

Q: Explain the shortfalls of analyzing GDP, by itself, to assess the state of the economy

A: Gross domestic product or GDP is considered to be a standard metric that is used to measure the…

Q: 1o

A: Monetary policy is a collection of acts designed to govern a country's total money supply and…

Q: Consider a perfectly competitive market where the market demand and supply are given by QD=550-50P…

A: introduction Demand-supply analysis helps in finding out the equilibrium market price and quantity…

Q: Explain why the industry supply curve is not the long-run industry marginal cost curve. The industry…

A: The link between marginal revenue and average cost is frequently graphically represented as the…

Q: Express Scripts has $2,023 million of inventory. Their holding cost is 31%. What is the total annual…

A: Given, Inventory = $2,023 million Holding Cost = 31%

Q: Use the supply and demand analysis of the market for reserves to visually illustrate and explain how…

A: Introduction  The demand and supply analysis focuses on the demand for a product or service and…

Q: EXERCISE 47.2 (Voting between three candidates) Suppose there are three candi- dates, A, B, and C. A…

A: A Nash equilibrium is a strategy profile in which no player can improve their expected utility by…

Q: 2.Suppose the firm uses a two-part tariff to implement first-degree price  discrimination. Determine…

A: A two-part tariff is a type of price discrimination when a product or service's price is split into…

Q: Consider a firm that produces glass. Glass production involves melting sand, soda ash, and limestone…

A: A constraint restricts or prohibits the success of a particular production procedure. According to…

Q: 1. According to Bentham's utilitarianism approach, the purpose of a policy is: (A) the greatest…

A: Bentham's utilitarianism is a moral theory that was developed by the philosopher Jeremy Bentham in…

Q: 1. In social welfare economics, what is the definition of social efficiency? 2. Image (A) below…

A: The pareto optimality is condition for efficiency. The efficiency leads to the best outcomes and no…

Q: List one assumption of each market stru Perfectly competitive market, Monopoly Oligopoly…

A: Market structure is a method for characterizing and comprehend organizations in light of the level…

Q: Q4/ A factory for the production of ceiling fans employs 500 labors with an annual productivity 80…

A: Production efficiency refers to the extent to which a production process is able to convert inputs…

Q: Someone might oppose the Clean Power Plan when its benefits exceed its costs because O A. climate…

A: Clean Power Plan was designed to help the rapidly growing trend toward cleaner and less polluting…

Q: Suppose the only currencies are the Philippine peso and Thai Baht for items 15-16. 15. Show a graph…

A: Foreign exchange is the process of converting one currency into another at a predetermined rate. It…

Q: The newest cell phone costs $400. Which function of money does this statement best illustrate? a…

A: Money is a good that is widely acknowledged as a means of economic exchange.  It serves as the…

Q: Consider a fixed exchange rate regime. How does higher government expenditure affect output and…

A: Since you have posted multiple questions, we will provide the solution only to the first question as…

Q: Fluctuations in the economy caused by policymaker's manipulation of the economy for the purpose of…

A: Fluctuations in the economy can be explained by the changes in the income of the people and the…

Q: The $8.4 billion of costs arising from using less coal to produce electricity O A. include the loss…

A: Answer 1 - The more than $34 billions of benefits from using less coal to produce electricity…

Q: Refer to Figure 9-4. What is the change in total surplus in this market because of trade? A B C D

A: The total surplus(TS) of an economy is the addition of consumer surplus (CS)  and producer surplus…

Q: If a government of a country with a zero trade balance increases its budget deficit, then what will…

A: IS-LM model under an open economy: For an open economy country, the product market equilibrium…

Q: “During your 48-month tour of duty, you will invest $200 per month for the first 45 months. We will…

A: The Internal Rate of Return (IRR) is a measure of the return on an investment that takes into…

Q: Define comparative advantage with the use of opportunity cost. Give a real life example of it.

A: International trade refers to the exchange of goods, services, jobs, capital, etc occuring between…

Q: A firm can produce output using three inputs and the following production 111 technology: q=x¹x¹x.…

A: A price-taking firm is one that cannot decide the price on its own. It takes the price as given.…

Q: Consider the following equations describing real money demand: M/P=Y(4-1.5i) So, if output (Y) in…

A:

Q: Plants A and B emit 12 tons and 6 tons of carbon dioxide (CO2), respectively. MAC(marginal…

A: Given that; There are two Plants A and B A emits 12 tons of carbon dioxide B emits 6 tons of carbon…

Q: In the Solow growth model with population growth, if the per-worker production function is given by…

A: According to the Solow model, once physical capital has increased to the point where depreciation…

Q: The market consensus is that U.S. inflation will remain low, averaging 1% over the next 3 years.…

A: Inflation is the increase in the average price level of a basket of goods and services.

Q: third stage of Product Cycle, the high income countries completely stop exporting the product and…

A: At the point when a product enters a market, it has a life cycle that follows its excursion from…

Q: Are you interested in the economy? How important is the economic situation in your daily life? Do…

A: Economics is the study of money in different fields, including production, consumption, and other…

Q: In free trade, the world price of goods directly imported by China is 400 US dollars; the price of…

A:

Q: Can you please solve question 2?

A: The market value of all final goods and services produced in the economic territory of the country…

Market Equilibrium and Failure

The economy of a country or any place depends on the market demand and market supply of goods and services.