Positive externalities Study guides, Class notes & Summaries

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

Society's Goal correct answers To produce an optimal mix of output Optimal mix of output correct answers the most desirable combination of output attainable using existing resources, technology, and social values. Market Failure correct answers an imperfection in the market mechanism that prevents optimal outcomes. Public goods. Externalities. Market power. Inequity. correct answers Specific sources of market failure are: Private good correct answers a good or service whose consu...

The concepts of land are - Legal, geographic and environmental, economic, and social. For appraisal purposes, market value may be defined as - The most probable selling price Appraisal is - The act or process of developing an opinion of value. What is Chattel? - Personal property is generally considered property that is movable,[1] as opposed to real property or real estate. What is a fixture? - any physical property that is permanently attached (fixed) to real property (usually land...

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...

A competitive firm is said to maximize its profit when....... - the price is equal to marginal cost. A Firm's Cost Curve - A firm's demand for a factor input, for example labour, slopes _____________. A) upward, due to the increasing marginal product of labour B) downward, due to the diminishing marginal product of labour C) downward, due to the increasing wage rates D) upward, due to the decreasing wage rates - B A profit-maximizing competitive firm should hire workers up to the point ...

Capital Budgeting Process (+1 year): Steps o :## Step 1. Generate Ideas (most important step) o Step 2. Analyze individual proposals (CF forecast) o Step 3. Plan the capital budget (plan capital budget, strategic within company) o Step 4. Monitor and post-audit (follow up) Capital Budgeting Process & Projects o :## Process of identifying and evaluating capital projects, projects where cash flow to the firm will be received over a period longer than a year Capital Budgeting Process: Pr...

Reasons for market failures - Imperfect information Concentration of market power Consumption of public goods Presence of externalities Market failure: public goods - Non-rival: more than one person can enjoy them simultaneously Nonexclusive: impossible or too costly to exclude individuals from enjoying the good Consumption of public goods leads to free riders Market failure: externalities - Positive or negative impact when one person's actions create a benefit of imposing a cost on ot...

info from transitional neighborhood to get stable An appraiser may be liable for all of the following except: Negligence Misrepresentation Fraud Low value - Low Value For appraisal purposes, market value may be defined as: - The most probable selling price Appraisal is - The act or process of developing an opinion of value. The concepts of land are - Legal, geographic and environmental, economic, and social. The tenant of a small, freestanding retail building is a baker who has i...

Economic Role of Government correct answers 1) Establish Suitable Framework 2) Provide Collective Goods and Services 3) Correct for externalities 4) Promote Competition 5) Promote Macroeconomic Stability 6) Redistribution of Income Externality correct answers An uncompensated gain or loss imposed on one by the maximizing behavior(making life better) of another Negative Externalities correct answers Air pollution, water pollution, visual pollution, noise pollution *Free market will ov...

BCOR 1015 Final Questions and Answers Graded A What are Hayeks views on planning and decision making? he believes in decentralized knowledge HAYEK: what is decentralized knowledge? spreading knowledge amongst people is Hayek against centralization? yes HAYEK: how does the price system coordinate resources? price signals are used to make decisions and send information to other groups because prices are lower or higher what are price signals? signals wrapped up in incentives; prices can consta...