Question

Which of the following statement(s) is correct? (x) An externality is the uncompensated impact of one...

Which of the following statement(s) is correct?

(x) An externality is the uncompensated impact of one person's actions on the well-being of a bystander.

(y) An externality exists whenever markets are not able to reach equilibrium.

(z) In a market economy, government intervention may improve market outcomes in the presence of externalities.

Homework Answers

Answer #1

Option x and z are correct. An externality is the uncompensated impact of one's person's actions on the well -being of a bystander. There are two types of externalities - positive and negative externalities.Positive externalities may provide benefit to bystander and negative externalities may provide costs to bystander. External costs or benefit of their action, so the market outcome is not efficient. In a market economy, government intervention may improve market outcomes in the presence of externalities. During negative externality, government wil impose tax on firms who creates negative externality and provides subsidies to those individuals who creates positive externality. And government intervention may lead to socially efficient outcome.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
QUESTION 2 Government intervention that aims to promote technology-enhancing industries is called a. industrial technology assistance....
QUESTION 2 Government intervention that aims to promote technology-enhancing industries is called a. industrial technology assistance. b. intervention policy. c. assisted technology. d. industrial policy. 4 points    QUESTION 3 Which of the following statements is not correct? a. Government policies may improve the market's allocation of resources when negative externalities are present. b. Without government intervention, the market will tend to undersupply products that produce negative externalities. c. Government policies may improve the market's allocation of resources when positive...
QUESTION 8 Education is heavily subsidized through public schools and government scholarships. This subsidization of education...
QUESTION 8 Education is heavily subsidized through public schools and government scholarships. This subsidization of education reflects the fact that a. the market-equilibrium quantity of education exceeds the optimal quantity of education. b. a negative externality requires a subsidy to move the market equilibrium closer to the social optimum. c. the social cost of education exceeds the private cost of education. d. the social value of education exceeds the private value of education. 4 points    QUESTION 9 When an...
Which of the following statement(s) is correct? (x) Organizers of an outdoor concert in a park...
Which of the following statement(s) is correct? (x) Organizers of an outdoor concert in a park surrounded by residential neighborhoods will always consider the noise and traffic cost to residential neighborhoods when they assess the financial profitability of the concert venture. (y) The social cost of pollution includes the private costs of the producers plus the costs to those bystanders adversely affected by the pollution. (z) If another driver enters a crowded highway, then the travel times of all other...
An MNC's value depends on all of the following: a. the MNC's required rate of return....
An MNC's value depends on all of the following: a. the MNC's required rate of return. b. the amount of the MNC's cash flows in a particular currency. c. the exchange rate at which cash flows are converted to dollars. d. All of the above 1 points    QUESTION 2 Livingston Co. has a subsidiary in Korea. The subsidiary reinvests half of its net cash flows into operations and remits half to the parent. Livingston's expected cash flows from domestic...
1.) True or False? For all societies, resources are scarce, and technology is limited, while people’s...
1.) True or False? For all societies, resources are scarce, and technology is limited, while people’s wants and needs for goods and services seem to be unlimited. (2 points) 2.) (1 point) Adam Smith’s “invisible hand” refers to a.) the subtle and often hidden methods that businesses use to profit at consumers’ expense. b.) the ability of free markets to reach desirable outcomes, despite the self-interest of market participants. c.) the ability of government regulations to benefit consumers, even if...
1. In which phase of the business cycle is the U.S. economy currently in? ________________. How...
1. In which phase of the business cycle is the U.S. economy currently in? ________________. How many months has the U.S. economy been in this stage of the business cycle? ___________ months 2. How long has the current expansion/recovery lasted to date? _________________ How does this compare to the average length of U.S. recessions since 1854? ______________________________. 3. What do the last four recoveries/expansions (that is, the current recovery/expansion and the previous three recovery/expansions), suggest about a new trend in...
Using the model proposed by Lafley and Charan, analyze how Apigee was able to drive innovation....
Using the model proposed by Lafley and Charan, analyze how Apigee was able to drive innovation. case:    W17400 APIGEE: PEOPLE MANAGEMENT PRACTICES AND THE CHALLENGE OF GROWTH Ranjeet Nambudiri, S. Ramnarayan, and Catherine Xavier wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
During the trial, lawyers for the accused said that the men believed that the accounting decisions...
During the trial, lawyers for the accused said that the men believed that the accounting decisions they made were appropriate at the time, and that the accounting treatment was approved by Nortel’s auditors from Deloitte & Touche. Judge Marrocco accepted these arguments. Marrocco added he was “not satisfied beyond a reasonable doubt” that the trio (i.e., Dunn, Beatty, and Gollogly) had “deliberately misrepresented” financial results. Given the facts of the case, do you believe Judge Marrocco’s decision was justified? Explain....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT