What resource problem is created by positive externalizes and what methods are suggested for dealing with this problem?
Please provide the best answer for the statement.
When there are positive externalizes from the production process, this causes an under allocation of resources to the production of a product. The reason for the under allocation is that the firm is not receiving all the benefit from producing the product. Some of the benefits spill over to a third party. The four suggested ways for correcting for this under allocation of resources are: (1) private bargaining; (2) a subsidy to consumers; (3) a subsidy to producers; and (4) government provision of the product.
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If Shaniq is a risk averse, then
A) her cost of risk exceeds $0. B) she has diminishing marginal utility of wealth. C) she is willing to buy insurance if the cost of insurance is low enough. D) all of the above.
Consolidation or cooperation frequently occurs in the public sector. Give some reasons why local governments consolidating or cooperating through special districts might be problematic
What will be an ideal response?
What are the factors that contribute to productivity growth in the market economy and which of them is considered most important?
Accumulated over a long span of time, the tax rate on interest income
a. removes all benefits from saving. b. reduces the benefits from saving by a small amount. c. reduces the benefits from saving by a large amount. d. does nor reduce any of the benefits from saving.