please answer the question below with a diagram drawn     Show on a diagram how a negative external effect can lead to a situation where marginal social cost will exceed marginal private cost at the profit maximising output. Explain briefly how bargaining could lead to an improvement in welfare.

Q: The process of asset transformation refers to the conversion of（ ） 1) safer assets into risky assets...

A: Asset: Something that provides future, current or potential economic benefit to an individual. Liabi...

Q: 1. The graph depicts the production possibilities of the nation Metalland. Metalland produces two go...

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...

Q: Name  ways one can improve their lives financially

A: 1. Have a emergency fund to cover 6 months of expenses.  2. Have a high savings rate.  3. Invest in ...

Q: How much do you need to deposit today (P) to withdraw BD25,000 at n =1, BD3,000 at n=2, and BD5,000 ...

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Q: Table 11.Growth (in Trillions) Real Year GDP 2015 16.30 2014 16.29 2013 15.92 2012 15.43 2011 15.19 ...

A: Given; GDP in 2009= 14.89 GDP in 2010= 15.00 Formula to calculate GDP growth:- GDP Growth=Change in ...

Q: DRYERS 8 8 8 8 8 8

A: We know that, Oppertunity cost is the next best alternative cost use of a resources.

Q: Assume that the government sets a price floor in the market for wheat and the price floor is set bel...

A: Price floor refers to the legal minimum price that can be charged for a good.

Q: Problem 1. Indicate which process from the alternatives shown below should be used on the basis of t...

A: Here we calculate the annual worth of the process X and Y by using the given information , so the ca...

Q: Draw a marker diagram showing how the equilibrium point changes if the production technology improve...

A: Market Equilibrium:- Whenever a industry is in balance, the price of a commodity or service usually ...

Q: 5) Suppose the Canadian economy is represented by the following: C=100+0.8Yd T-$50 I-20+0.1Y G-200 Y...

A: The formula for equilibrium output: Y = C + I + G Given, C = 100 + 0.8Yd  Yd = Y - T and T = $50 I =...

Q: GDP and GNP cannot be grouped and calculated by industry. TRUE OR FALSE?

A: Industries refers to the group of organization that generated similar.prpducts with the use of simil...

Q: 3. In Country X, the mid-year population at time 1 was 20,000,000 and the mid-year population at tim...

A:

Q: An economy, Delta exported goods worth $30 billion and services worth another $10 billion in 2020.  ...

A: Merchandise Trade deficit is measured by the difference of export and import of goods. Given by $(30...

Q: Use the graph below to determine the best answer to the question. 240 IS 200 160 120 80 40 10 20 30 ...

A:

Q: In the economy of Pizzania, bread and cheese produced are sold both to the pizza company for inputs ...

A: Calculation of GDP in this question is solved with the help of Value-Added Method  

Q: Identify and explain using appropriate diagrams the 2 main categories of gains from trade

A: Introduction: The exchange of products and services between parties, or the buying and selling of co...

Q: In the following table, select the amount of each good that each country exports and imports In the ...

A: " Since you have asked multiple questions ,we will solve first  question for you.If you want specifi...

Q: Explain the three main types of unemployment and outline the policies that can be used to reduce eac...

A: Unemployment is a situation in which a person who is willing and able (capable) to work do not find ...

Q: Prices of money market instruments undergo the least price fluctuations because of 1) the long terms...

A: please find the answer below.

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A: Production possibility curve shows the two goods possible combinations  which can be produced with g...

Q: Discuss the Contingent Valuation Method

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A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts fo...

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A: Inflation is a measure of the pace of rising costs of labor and products in an economy. Inflation ca...

Q: WHO IS FAA? 2. WHAT DOES FAA DO

A: 1. FAA stands for Federal Aviation Administration and this is the biggest agency of government in th...

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Q: A monopolist produces output with the following (inverse) demand function: P=120-Q where P is the ma...

A: P =120-QMC=60TC=60QNow,TR= P x Q     =(120-Q) x Q     =120Q-Q2∂TR∂Q=120-2QMR=120-2QNow,π=TR-TCπ=120Q...

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A: Economics relates to the organization of money, business, and industry.  

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A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new que...

Q: How can you say that a country participates in the global market?

A: Global market means the market where different nations trade to each other it is called globalizatio...

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Q: 9. The big Social Security indexing debate Social Security is a old-age insurance program. Most peop...

A: The CPI is the consumer price index. It measures the weighted average price of a basket of consumer ...

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A: * SOLUTION :-  Based on the given information the calculation as follows.

Q: Task 2: State of the World Economy Perform online research and write a short essay on the state of t...

A: In present state of world economy is encountering the the recovery phase from the bad and deep impac...

Q: Dual Mandate: Suppose the central bank has a dual mandate. This implies the following IS-MP-AS model...

A:

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Q: The figure below shows one of Josie's indifference curves between peaches and cream-the indifference...

A: Josie's income=$32Price of peaches=$4Price of cream=$4Now,Maximum peaches Josie can purchase=324=8In...

Q: 3. Be sure to label all points. Suppose the domestic autarky relative price M/S=1 and autarky consum...

A: Comparative advantage is when a country is able to produce a particular good or services at a lower ...

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A: The markets are the place where the buyers, and the sellers of various goods, services, and other pr...

Q: According to a 2016 article in the Wall Street Journal, “After years of relative equilibrium, the jo...

A: The labor market illustrates how the demand and the supply of labor determine the equilibrium wage r...

Q: discuss in detail the process of privatization of non-profit companies that are state owned

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Q: ) Suppose that ing a society there are lonly two people, Costas and George, white which share a fixe...

A: Information given: Total income: 500 Ik + Ir =500 Costa's Utility Function Uk= 50Ik1/2 George's Util...

Q: in year two. Project B costs $120,000 and is expected to generate $64,000 in year one, $67,000 in ye...

A: A rate of return (RoR) is the net gain or loss of an investment over a specified time period, expres...

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A: Supply is the number of goods and services that the supplier is ready and willing to supply at each ...

Market Failure Analysis

To understand Market failure, we need to first understand welfare economics. An Italian economist, Vilfredo Pareto stated that allocation of resources in an efficient manner such that an economic change, which harms no one and makes someone better off, indicates an increase in social welfare. It is also called Pareto Optimality, where resources cannot further be reallocated without harming one. This does not apply to those economic changes, which harm some and benefit others. social welfare increases if the utility of any of its members' increases and none decrease in the economy.