Externality Study guides, Class notes & Summaries

The law attempts simultaneously to be ____________ and also maintain a reasonable degree of ____________. - correct answer -The law attempts simultaneously to be *flexible* and also maintain a reasonable degree of *certainty* Laws provide a framework within society. They are made *prescriptively* and *proscriptively*. What do each of these terms mean? - correct answer -*Prescriptively* - command conduct which must be done *Proscriptively* - command conduct which must NOT be done What tw...

RMI 3567 Exam 2 Questions and Answers Already Passed What are three positive externalities that occurred due to access to terrorism insurance? 1. facilitates real estate transaction 2. strengthens businesses' ability to operate in risky areas 3. protects wealth/savings of households in risky areas Pollution from gasoline in a car or industrial pollution would be examples of what? negative externality This is the most common terrorism model for insurance risk pool What are the t...

Why might the Simple Multiplier be an inaccurate measure of the total amount of money circulating in an economy from a given direct investment into the economy? - Answer-The Simple Multiplier assumes a closed economy. In an open economy there would likely be leakages out of the 'local' economy. If the marginal propensity to consume is 0.6 and a direct investment of $1,000,000 is made what would be the quantity of money flowing through the economy according to the Simple Multiplier? - Ans...

WGU C718 Full Study Guide Questions Rated A+ What is the definition of economics? the study of how humans make decisions in the face of scarcity What are economic and accounting profits? Accounting - profit computed using only explicit costs Total revenue - Explicit costs = accounting profit Economic - profit computed using explicit and implicit costs Total revenue - Explicit costs - Implicit costs = Economic profit What are the characteristics of an oligopoly? 1) few firms 2) barriers to ent...

MGT 300 Exam 2 Latest Update 100% Correct Ethics The moral principles, values, and beliefs that govern group or individual behavior according to what is right or wrong and what contributes to the balanced good of all stakeholders Ethical Dilemma A situation in which no choice is entirely right Preconventional Stage An individual's moral decisions is based primarily on self-protection or self-interest Does things based on rewards/punishment Conventional Stage An individual's...

currently is charging 25 cents per cup, but she wants to adjust her price to earn the $50 faster. If you know that the demand for lemonade is elastic, what is your advice to her? - ANSWER Lower the price to increase total revenue For which of the following goods is the income elasticity of demand likely lowest? - ANSWER water Assume that a 4 percent increase in income results in a 2 percent increase in the quantity demanded of a good. The income elasticity of demand for the good is - ANSWE...

Production Possibility Frontier Supply and demand diagram showing equilibrium Supply and demand surplus Increase in demand Decrease in demand Increase in supply Decrease in supply Consumer surplus Producer surplus Inelastic demand Elastic demand Unitary elastic demand Perfectly elastic demand Perfectly inelastic demand Inelastic supply Elastic supply Substitutes diagram Ad valorem tax Tax diagram Subsi...

EC 248 Final Exam | Complete Solutions (Verified Answers) Health care a) is the most important determinant of health in OECD countries. b) is the most expensive determinant of health in OECD countries. c) spending continues to grow rapidly in most OECD countries. d) sector is one of the largest sectors in most OECD countries. What statement best describes a health system? a) Aspects of society that have an important bearing on the health care of individuals and the population. b) Aspects of so...

Economics correct answers the study of how society manages its scarce resources 5 principles correct answers 1. People Face Trade-Offs 2. Opportunity Cost 3. People respond to incentives 4. Markets are usually a good way to organize economic activities 5. Governments can sometimes improve market outcomes 1. People Face Trade-Offs correct answers Individual Trade-Offs Society's Trade-Offs -efficiency and equality -ex: progressive income tax (equ. inc, effic. dec) 2. Opportunity...

What are three positive externalities that occurred due to access to terrorism insurance? - Answer-1. facilitates real estate transaction 2. strengthens businesses' ability to operate in risky areas 3. protects wealth/savings of households in risky areas Pollution from gasoline in a car or industrial pollution would be examples of what? - Answer-negative externality This is the most common terrorism model for insurance - Answer-risk pool What are the two main features/provisions of TRIA?...