Externality Study guides, Revision notes & Summaries

WGU C718 Full Study Guide Questions | 104 Questions with 100% Correct Answers | Verified | Latest Update | 25 Pages What is the definition of economics? - Answer ️️ -the study of how humans make decisions in the face of scarcity What are economic and accounting profits? - Answer ️️ -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 -...

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...

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...

CIS 105 FINAL Questions & Answers 100% AccurateCIS 105 FINAL Questions & Answers 100% AccurateCIS 105 FINAL Questions & Answers 100% AccurateCIS 105 FINAL Questions & Answers 100% AccurateCIS 105 FINAL Questions & Answers 100% AccurateMetcalfe's Law - ANSWERSstates the effect of a telecommunications network is proportional to the square of the number of connected users of the system. Network Effect - ANSWERS(also called network externality or demand-side economies of scale) is the positive e...

Economics is best defined as the study of how to run a business most profitably. True or False. - ANSWER False Exhaust from a factory that increases health risks for people living near the factory is an example of an externality. True or False. - ANSWER True In 2008 and 2009, the U.S. economy experienced a deep economic downturn. If there is a short- run trade-off between inflation and unemployment, to combat the high unemployment, President Obama should have pursued an inflationary policy...

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?...

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...

NSC 150 Exam 2People engage in optimization, which is doing the best one can with available resources. - correct answer True What is an externality in a market? - correct answer All of the costs and benefits of production of a good are not internalized in the price. What is an example of a market failure? - correct answer Taxes What is the law of demand? - correct answer When the price of a good rises, the quantity demanded will decline. Whats the primary disadvantage of a Pigovian t...

Law - correct answer -Requirements for human conduct applying to all persons within their jurisdiction. Public Goods - correct answer -Necessary and beneficial commodities that private entities will not supply because there is no incentive in providing them. Externality - correct answer -When the production or consumption of a good affects someone who does not fully consent to the effect and when the costs of the good are not fully incorporated in the price of the good. Monopoly - corre...

Scientific Method for Social Science - Usually has four basic components -Theory -Operationalization -Observation -Analysis Dependent Variable - A factor/event/outcome that we want to explain Independent Variable - Causes/explanations/factors that we think are important in driving the outcomes/dependent variables Normative Statement - Describes the way the world should or is desired to be Empirical Statement - Describes the state of the world based on observations and evidence Federal ...