What is a positive and what is a normative statement?
Answer:
normative statement: conclusions based on value judgments that cannot be tested
positive statement: conclusions based on logic and evidence that can be tested.
Hope that helps
Have a good day
there’s 15 questions and this is 5.
Using the Three-Step Ethics Model (Blanchard-Peale) analyze the following case:
A student knows that two other students who sit next to each other in class are cheating on exams because they talk about it after class. Is this an ethical dilemma? What, if anything, should the student do?
a. _______________________________________________________________________________________
b. _______________________________________________________________________________________
c. _______________________________________________________________________________________
Answer:
I. Yes, it is an ethical dilemma. There are two lines of action that are morally correct but conflict with one another. That is, individually, both lines of action seem correct or right but once a choice is made to go with one the other becomes wrongful. The student is probably torn between reporting and not reporting. If they report, the students will be punished and probably asked to repeat the exam. If they don't, the results for the examinations be a true example of the capacities of the student in the class.
An example would be a staff in a car dealership business who discovers that her boss always bribes the regional sales manager from the car company so that the company can get more vehicles allotted to them.
If she keeps quiet about it, she benefits because more cars mean more potential sales. More sales mean more profit for the business. More profit for the business means a guaranteed salary for the staff.
If she speaks up, the bribery which in a way puts other dealers at a disadvantage will probably stop. But she most likely will lose her job.
In the example above, there is no foreseeable repercussion for the student if he or she reports the matter of cheating to the relevant authority.
It is important to resolve the question of whether or not reporting such matter should rest on whether or not the subject would be exposed to a repercussion. This is what the 3 steps ethics model seeks to resolve.
2. In order to decide what to do, the student who observed the cheating must carry out the following excercise.
The 3-step Ethics asks the following questions:
1. Is it legal? the answer is No. That's why the word "cheat" is used to describe the action of the students during the examinations.
2. Is it fair? Cheating is not fair. It means that the subjects involved are not really being examined but would most likely have results that say "haveing being tested during the examinations, they had a better result than others."
3. How does it make me feel? Putting oneself in the observer's shoes, it is impossible to feel good knowing that others would be recognized and probably celebrated for doing the wrong thing.
Analyzing all the answers above, we see that they are all in the negative. Therefore, the matter should be reported to the examiners by the student who is doing the observing.
Explanation:
As can be seen from the answer above, the Three-Step Ethics Model (Blanchard-Peale) is best utilized for the resolution of an ethical dilemma. used when evaluating an ethical dilemma
Cheers
Define behavioral Economics and explain why it is different from traditional economics.
Answer:
Behavioral economics differs from traditional economics by incorporating insights from psychology. ... Behavioral economics assumes that the context in which a decision is made has an enormous effect on the decision or preference.
Hope this helps, have a wonderful day/night, and stay safe!
Today, you deposit $2,500 of cash in a savings account that earns 8.0% in annualized interest. One interest payment is received at the end of every year. You make no other deposits or withdrawals.
In five years, the amount of interest on interest you have earned in your savings account is closest to: ________
a. $173
b. $175
c. $177
d. $1,000
e. $1,177
Answer:
a. $173
Explanation:
The computation of the amount of interest earned in five years is shown below;
But before that following calculations need to be done
As we know that
Simple interest = Present value × rate of interest × time period
= $2,500 × 8% × 5
= $1,000
Now the future value is
Future value = Present value × (1 + rate of interest)^number of years
= $2,500 ×(1 + 8%)^5
= $2,500 × 1.4693280768
= $3,673
Now the compound interest is
Compound interest = Future value - Present value
= $3,673 - $2,500
= $1,173
Now interest on interest is
Interest on interest = Compound interest - Simple interest
= $1,173 - $1,000
= $173
Holly Company has the following information for December 1 to December 31. All direct materials are 100% complete.
Beginning balance December 200 units, 20% complete for conversion $14,000
Completed 800 units and transferred to finished goods inventory $131,182
Direct materials 54,000
Direct labor 34,000
Factory overhead Property taxes 6,000
Depreciation 32,000
Utilities 18,000
Indirect labor 4,000
Ending balance December 31, 300 units, 40% complete 30,818
Required:
Calculate equivalent units using the weighted-average and FIFO methods.
Answer:
Weighted Average : Materials = 1,100 units, Conversion Costs = 920 units
FIFO : Materials = 1,100 units, Conversion Costs = 1,260 units
Explanation:
Weighted Average
Materials
Ending Work In Process (300 ×100 %) = 300 units
Completed and Transferred (800 ×100 %) = 800 units
Equivalent units in respect to materials = 1,100 units
Conversion Costs
Ending Work In Process (300 ×40 %) = 120 units
Completed and Transferred (800 ×100 %) = 800 units
Equivalent units in respect to conversion costs = 920 units
FIFO
Materials
To finish Opening Work in Process (200 × 0%) = 0 units
Started and Completed (800 × 100%) = 800 units
Ending Work in Process (300 × 100%) = 300 units
Equivalent units in respect to materials =1,100 units
Conversion Costs
To finish Opening Work in Process (200 × 80%) = 160 units
Started and Completed (800 × 100%) = 800 units
Ending Work in Process (300 × 40%) = 300 units
Equivalent units in respect to materials =1,260 units
What are the factors that affect individual productivity?
Answer:
The factors that affect individual productivity is described below in details.
Explanation:
Important Factors Influencing Employee Productivity:
Work Environment: An employee’s work conditions affect their attitude, energy, and overall production in your organization. Processes: Processes, or their inadequacy, has a tremendous influence on organizational potency.Goals: Clearly illustrated work goals are great for boosting potency levels because they’re dimensions of productivity themselves.Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley Corporation issued $20,000,000 of five-year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of $20,811,010. Interest is payable semiannually on April 1 and October 1.
a. Journalize the entry to record the issuance of bonds on April 1, Year 1. For a compound transaction, if an amount box does not require an entry, leave it blank.
b. Journalize the entry to record the first interest payment on October 1, Year 1, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.) For a compound transaction, if an amount box does not require an entry, leave it blank.
c. Why was the company able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000?
The market rate of interest is the contract rate of interest.
Answer:
a. Journal Entry Debit Credit
Cash $20,811,010
Bonds Payable $20,000,000
Premium on Bonds Payable $811,010
(To record the issuance of bonds on April 1)
b. Journal Entry Debit Credit
Interest expense $818,899
Premium on Bonds payable $81,101
(811,010/5 * 6/12)
Cash $900,000
(To record the first interest payment on October 1,
Year 1, and amortization of bond premium)
c. Company can issue at price 20,811,010 instead of 20,000,000 because coupon rate of company is higher than the effective rate of interest so company is able to issue the bonds have been issued at a premium.
Megan and Susan are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Megan takes 5 hours to brew a gallon of root beer and 3 hours to make a pizza. Susan takes 8 hours to brew a gallon of root beer and 4 hours to make a pizza.
Megan's opportunity cost of making a pizza is (1/2 gallon, 2 gallon, 3/5 gallon, 1 2/3 gallon) of root beer, and Susan's opportunity cost of making a pizza is (1/2 gallon, 2 gallon, 3/5 gallon, 1 2/3 gallon) of root beer.
(Megan/Susan) has an absolute advantage in making pizza, and (Megan/Susan) has a comparative advantage in making pizza.
If Megan and Susan trade foods with each other, (Megan/Susan) will trade away pizza in exchange for root beer.
The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates better off is (1/2 gallon, 2 gallon, 3/5 gallon, 1 2/3 gallon) of root beer, and the lowest price that makes both roommates better off is (1/2 gallon, 2 gallon, 3/5 gallon, 1 2/3 gallon) of root beer per pizza.
Answer and Explanation:
The opportunity cost of megan for making pizza would be equivalent to the root amount as she make 1 pizza in 3 hours and in 5 hours she produced 1 boot beer so in one hour she produced 1 by 5th So for 3 hours it produced 3 by 5 so the opportunity cost would be 3 by 5 root beer gallon
Likewise for susan it produced 4 by 8 i..e 1 by 2 root beer gallons
By the above calculation the megan has the absolute advantage as megan takes lesser hours i.e. 3 hours while susan takes 4 hours
And, the susan has the comparative advantage as it contains the less opportunity cost i.e 1 by 2 as compared with megan i.e. 3 by 5
Also in the case of trade off susan would trade away as she has the comparative advantage
The highest price would be better off by 3 by 5 gallon
And, the lowest price is 1 by 2
The following information is available for Robstown Corporation for 20Y8:
Inventories January 1 December 31
Materials $44,250 $31,700
Work in process 63,900 80,000
Finished goods 101,200 99,800
December 31
Advertising expense $ 400,000
Depreciation expense-office equipment 30,000
Depreciation expense-factory equipment 80,000
Direct labor 1,100,000
Heat, light, and power-factory 53,300
Indirect labor 115,000
Materials purchased 556,600
Office salaries expense 318,000
Property taxes-factory 40,000
Property taxes-office building 25,000
Rent expense-factory 27,000
Sales 3,850,000
Sales salaries expense 200,000
Supplies-factory 9,500
Miscellaneous costs-factory 11,400
Required:
A. Prepare the 20Y8 statement of cost of goods manufactured.*
B. Prepare the 20Y8 income statement.*
* Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Less" or "Plus" will automatically appear if it is required. Enter all amounts as positive numbers. Be sure to complete the statement heading.
Answer:
A. Statement of cost of goods manufactured for the year ended 20Y8
Beginning Work In Process $63,900
Add Manufacturing Costs :
Materials ($44,250 + $556,600 - $31,700) $569,150
Depreciation expense-factory equipment $80,000
Direct labor $1,100,000
Heat, light, and power-factory $53,300
Indirect labor $115,000
Property taxes-factory $40,000
Rent expense-factory $27,000
Supplies-factory $9,500
Miscellaneous costs-factory $11,400
$2,005,300
Less Ending Work In Process ($80,000)
Cost of Goods Manufactured $1,989,250
B. Income statement for the year ended 20Y8
Sales $3,850,000
Less Cost of Goods Sold
Opening Finished Goods $101,200
Add Cost of Goods Manufactured $1,989,250
Less Ending Finished Goods ($99,800) ($1,990,650)
Gross Profit $1,859,350
Less Operating Expenses
Advertising expense $400,000
Depreciation expense-office equipment $30,000
Office salaries expense $318,000
Property taxes-office building $25,000
Sales salaries expense $200,000 ($973,000)
Net Income $886,350
Explanation:
Part A
Statement of cost of goods manufactured is a summary of the cost incurred in the manufacturing process.
Cost of Goods Manufactured = Opening Work In Process + Total Manufacturing Costs - Closing Work In Process
Part B
Income Statement shows the profit earned during the reporting period
Profit = Gross Profit (Sales - Cost of Goods Sold) - Operating Expenses
When consumers study consumer behavior, they should come to make better decisions. Which of the following can be helpful in enlightening consumers?
A) Consequences associated with poor budget allocation.
B) The role of emotions in consumer decision making.
C) Avenues for seeking redress for unsatisfactory purchases.
D) The effect of the environment on consumer behavior.
E) All of the above.
Answer: E) All of the above.
Explanation:
All the topics listed above can be helpful in enlightening consumers. They need to know what happens when they make poor budgeting decisions so that they can avoid it. They also need to understand the emotions involved in consumer making so that they can avoid making emotional decisions if need be.
They need to know that they can as well as where they can report purchases that were unsatisfactory and they need to understand that the environment can influence consumer behaviour so that they can make wiser decisions.
How are bonds a safer investment than stock?
A. Bonds are safer because they are loans with a guaranteed interest rate for return
B. Bonds are sager because they are paid with with taxes
C bonds are safer because they are paid by the stock market
D bonds are safer cause they qre assets with gauranteed return from the government
Can be mutiple answers
Answer: D and B
Explanation:
The stock market is where you invest where you want to and hope the money will grow bigger by the company growing bigger. Bonds are you paying a certain amount of money and the government will pay back a little back at a time so if the government doesn't pay which is very unlikely is the reason why bonds are safer.
Stocks A and B have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is correct?
A B
Price $25 $40
Expected growth 7% 9%
Expected return 10% 12%
A) The two stocks should have the same expected dividend
B) The two stocks could not be in equilibrium with the numbers given in the question
C) A's expected dividend is $0.50
D) B's expected dividend is $0.75
E) A's expected dividend is $0.75 and B's expected dividend is $1.20
Answer: E) A's expected dividend is $0.75 and B's expected dividend is $1.20
Explanation:
Using the Gordon growth model, you can calculate the expected dividend. The formula is:
Price = Expected dividend/ (expected return - expected growth)
Stock A expected dividend
25 = D/ (10% - 7%)
D = 25 * 3%
= $0.75
Stock B expected divided
40 = D / (12% - 9%)
D = 40 * 3%
= $1.20
Option A, C and B are therefore wrong.
Option E is correct.
Mr. Dorji is not working currently
because his skills are not relevant for the jobs available in the market. What category of unemployment would Dorji fall in?
Select one:
a. Cyclical Unemployment
b. Structural Unemployment
c. Seasonal unemployment
d. Frictional Unemployment
= Structural Unemployment
Answer:
b. Structural Unemployment
Explanation:
Structural unemployment exists due to a mismatch between jobseeker's skills and the currently available jobs in the market. This implies that the market has available job opportunities, but the current labor force may require retraining to take up the jobs effectively.
Advancements in technology may cause structural unemployment. In recent years, robots have been replacing unskilled workers. It means these workers must acquire skills through training to have a chance of getting hired elsewhere.
This question tests your understanding of the economics of a commodity tax. Assume that in each case the demand curve slopes down from top left to bottom right and the supply curve slopes up from bottom left to top right If the government halved a commodity tax, what would not always follow?
a. The quantity traded would increase
b. The price exclusive of commodity tax that sellers receive would rise.
c. The price inclusive of commodity tax that buyers pay would fall.
d. Tax revenue would increase.
Answer:
d. Tax revenue would increase.
Explanation:
When government halved commodity tax so they divided into two parts so it is use full them to manage it separately in two different parts. So when government needs more revenue they tax some commodity on their trade. So now government collects different taxes from different parties so their tax revenue increases by that decision.
Comment with your agreement or disagreement (and why) on the following quote; include in your answer a discussion of what the CEO’s role should be in setting ethical standards and in enforcing ethical behavior: ""Value statements serve as a cornerstone for culture building; a code of ethics serves as a cornerstone for developing a corporate conscience.""
Answer:
agreed
Explanation:
In simple words, the modern business environment is such that an unethical firm will not survive for long in the market. Thus, it is mandatory for firms to be ethical in every way. A CEO of a company represents the company and can considerations the face of the entity, thus, his or her authority obliges him or her to act and make others act in an ethical manner.
The value statements and code of ethics should be considered as must for the operative activities as it serves as a code of conduct for followers.
Marginal shows how much money can be made if a producer sells one additional unit of a good.
Answer:
Marginal revenue
Explanation:
Marginal revenue is the additional income attributed to the sale of an extra unit. It is the income a business generates by selling one more unit of a product. Marginal revenue (MR) is compared to Marginal cost( MC) to determine if a business should continue with production and selling activities. If marginal revenue is greater or equal to marginal costs, the company should proceed with production and selling.
Answer:
revenue
Explanation:
The Phillips Curve is a graphical depiction of the
Select one:
a.
negative relationship between inflation and unemployment.
b.
positive relationship between inflation and output.
C.
negative relationship between unemployment and output
d.
negative relationship between inflation and the CPI
= negative relationship between inflation and unemployment.
Answer:
= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.
Explanation:
= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.= negative relationship between inflation and unemployment.
Overall what statement is most true of Judith
what is micro economy
A new machine comes with 200 free service hours over the first year. Additional time costs $180 per hour. What are the average and marginal costs per hour for the following quantities?
a) 125.
b) 225.
c) 325.
Answer:
a) 0, 0
b) 180 per hour, 20per hour
c) 180 per hour , 69.2 per hour
Explanation:
We are to calculate the average and marginal costs per hour of the given value above
a) Given Number of hours is 125, but we are told that the new machine comes with 200 free service hours over the first year. Then MARGINAL COST= 0 because the service can be equal to 200hours and the given 125 hours is less than that.
then AVERAGE COST = ZERO
(b) we are Given 225 number of hours
Additional time costs is given as $180 per hour.
Then we have $180 per hour as MARGINAL COST.
Total cost can be calculated as
= [$180 × (225 - 200)]
=[ $180 ×25] = $4,500
Average cost can be calculated as
ratio of Total cost to Number of hours i.e $4,500/225
= 20per hour
C)we are Given 325 number of hours
Additional time costs is given as $180 per hour.
Then we have $180 per hour as MARGINAL COST.
Total cost can be calculated as
= [$180 × (235 - 200)]
=[ $180 ×125] = $22,500
Average cost can be calculated as
ratio of Total cost to Number of hours i.e $22,500/325
= 69.2per hour
There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There were about 70,000 people on the waiting list to buy season tickets in 2018. Packers tickets are a normal good. As a result of the economic recession in 2010 during which people's incomes decreased, the:________.
a. demand for Packers tickets decreased.
b. substitution effect changed the quantity demanded.
c. quantity demanded of Packers tickets decreased.
d. demand curve for Packers tickets shifted rightward.
Answer: quantity demanded of Packers tickets decreased.
Explanation:
First and foremost, we should note that normal goods are the goods that when the income of an individual rises, the individual will buy more and in a case whereby the income reduces, the person will buy less.
Therefore, during recession when people's incomes decreased, the quantity demanded of Packers tickets decreased as well
Activity
After graduating from college, Susan decides to live with her parents for a year. She decides to live at home so that she could build up her savings
before renting a place on her own or with a roommate. She will pay her parents $500 per month to contribute to rent, laundry, cable, and food.
She earns $2500 every month after taxes and deductions for social security and insurance. She has a car payment of $300 per month, $150 for car
insurance, $500 for her student loans, and $100 for her cell phone. Her father convinces her to start saving for retirement at $50 per month.
Susan is fond of shopping and when she is out with her friends, they usually make a day of it. They usually dine out. She spends about $500 per
month on shopping and another $400 on dining out. When Susan takes sandwiches to work for lunch on those last few days before her next
paycheck, she wonders where all the money goes and why she doesn't seem to be able to save for her own place.
Use any online budgeting tool to record Susan's expenses and find out what can she do to save money for her place.
Answer: After graduating from college, Susan decides to live with her parents for a year. She decides to live at home so that she could build up her savings
before renting a place on her own or with a roommate. She will pay her parents $500 per month to contribute to rent, laundry, cable, and food.
She earns $2500 every month after taxes and deductions for social security and insurance. She has a car payment of $300 per month, $150 for car
insurance, $500 for her student loans, and $100 for her cell phone. Her father convinces her to start saving for retirement at $50 per month.
Susan is fond of shopping and when she is out with her friends, they usually make a day of it. They usually dine out. She spends about $500 per
month on shopping and another $400 on dining out. When Susan takes sandwiches to work for lunch on those last few days before her next
paycheck, she wonders where all the money goes and why she doesn't seem to be able to save for her own place.
Use any online budgeting tool to record Susan's expenses and find out what can she do to save money for her place.
What can a speaker do to ensure that they are respectful of their audience, especially when speaking to a skeptical audience or an audience that has different values than their own?
ANSWER
Always state the facts pertaining to your speech.
Always avoid stereotypes during a speech.
Never bash or be bias.
Remain objective.
Have respect for the people and their values as well as beliefs .
Explanation:
There are hundreds of high school students in need of algebra tutoring services. Dozens of companies offer tutoring services, and they view the quality of the tutoring at the different companies to be largely the same.
Number of Firms (few, one, or many)
Types of product(differentiated, unique, anything, or standardized)
Entry (challenging, impossible, or easy)
Market model (perfect competition, monopoly, monopolistic competition, or oligopoly)
Answer:
Number of firms: many. There are dozens of companies offering tutoring services, so we can safely say that the number of firms in this market is many.
Types of product: standardized. Consumers of this market, who are the students, view the quality of all algebra tutoring companies as being essentially the same.
Entry: easy. The only requirement to enter this market is to be able to teach algebra, so as long as a person knows algebra, this person would in theory be able to enter the market.
Market model: perfect competition. The market of algebra tutoring services in this case is closest to perfect competition. Both buyers and sellers are plenty, so neither can excercise market power. The product offered is standardized, which means that each firm's tutoring service is a perfect substitute for the tutoring services of the other firms. Finally, barriers of entry and exit are almost non-existant.
. Explain the puropose of the project charter ? Explain 3 tools and techniques that can be used to develop it
Answer:
It provides a preliminary delineation of roles and responsibilities, outlines the project's key goals, identifies the main stakeholders, and defines the authority of the project manager. A project charter should: Contain the essence of the project. Provide a shared understanding of the project
Explanation:
Develop a Project Charter - Tools and Techniques
Expert Judgment: A crucial step in executing the project by taking opinions from subject matter experts, garnering valuable inputs and understanding the business case complexity related to the project. ...
Data Gathering. ...
Interpersonal and Team Skills. ...
Meetings.
Balance sheet and income statement data indicate the following:
$842,000
Bonds payable, 10% (due in two years)
Preferred 5% stock, $100 par (no change during year)
Common stock, $50 par (no change during year)
220,000
1,672,000
376,000
Income before income tax for year
Income tax for year
89,000
Common dividends paid
Preferred dividends paid
83,600
11,000
Based on the data presented, what is the times interest earned ratio (rounded to one decimal place)?
Oa. 7.9
Ob. 4.5
Oc. 3.5
Od. 5.5
Answer:
The correct option is d. 5.5.
Explanation:
Note: This question is not properly arranged. It is therefore rearranged before answering the question as follows:
Balance sheet and income statement data indicate the following:
Bonds payable, 10% (due in two years) $842,000
Preferred 5% stock, $100 par (no change during year) 220,000
Common stock, $50 par (no change during year) 1,672,000
Income before income tax for year 376,000
Income tax for year 89,000
Common dividends paid 83,600
Preferred dividends paid 11,000
Based on the data presented, what is the times interest earned ratio (rounded to one decimal place)?
Oa. 7.9
Ob. 4.5
Oc. 3.5
Od. 5.5
The explanation of the answer is now given as follows:
The times interest earned ratio can be calculated using the following formula:
Times interest earned ratio = EBIT / Interest expenses ................ (1)
Where;
Interest expenses = Bonds payable * 10% = $842,000 * 10% = $84,200
EBIT = Earnings before interest and taxes = Income before income tax for year + Interest expenses = $376,000 + $84,200 = $460,200
Substituting the values into equation (1), we have:
Times interest earned ratio = $460,200 / $84,200 = 5.46555819477435
Rounded to one decimal place, we have:
Times interest earned ratio = 5.5
Therefore, the correct option is d. 5.5.
what are the similarities between scientific theory and bureaucratic theory?
Answer:
The Scientific Theory is based on using data and human strengths to increase output, while the Bureaucratic management style focuses on hierarchies and tight job roles. Regardless of the organization, the goals remain the same across the board. Every organization strives to minimize costs, while maximizing output.
Simone has a concave utility of wealth function, u(x). She is contemplating two prospects, Y and Z. EV(Z) > EV(Y). Which of the following statements is true?
a. Simone will necessarily prefer Z to Y.
b. Simone’s ranking of Y and Z cannot be determined without knowing the distribution of the outcomes that result in EV(Y) and EV(Z).
c. Simone will necessarily prefer Y to Z.
d. Because EV(Z) > EV(Y), EU(Z) > EU(Y), but that is not sufficient information to determine her preference ranking.
Answer:
b. Simone ranking of Y and Z cannot be determined without knowing the distribution of outcomes that result in EV(Y) and EV(Z).
Explanation:
The utility wealth function describes the satisfaction of a consumer by the consumption of real goods and services. The utility function of Simone cannot be determined without knowing the opportunity cost between Y and Z.
Loggers are much __________ likely to supply wood to the market if property rights are not enforced.
Classify the source of market failure in each case listed.
a. A house party plays music at a very high volume, disturbing other residents in the neighborhood.
b. A single public utilities company is responsible for supplying electricity for an entire state. As a result, the utilities company can set the price of electricity.
Answer:
Loggers are much more likely to supply wood to the market if property rights are not enforced.
When property rights are not well enforced, ownership of the resource is not well defined either. This will lead to more people taking advantage of the resource like the loggers above. They will supply more wood because the ownership of their resource source is not well defined.
Options for the 2 questions below are Market Failure or Externality.
a. A house party plays music at a very high volume, disturbing other residents in the neighborhood. EXTERNALITY.
This is a negative externality. Negative externalities are when third parties suffer negative consequences as a result of transactions that they are not a party to. The neighbors are not playing music but it is disturbing them.
b. A single public utilities company is responsible for supplying electricity for an entire state. As a result, the utilities company can set the price of electricity. MARKET POWER.
The Utility company is not facing competition in this state and so can set the price it wants. This can lead to market failure simply because the company would have too much market power.
