Because Demand is up and supply is down companies are going to start demanding a higher price for their product since there are less on the market
Answer: The creation of a government set price for gasoline by ni government.
Explanation:
In 1970 president Nixon inteoduced a soft artificial price ceiling on gasoline in the United States. This was as a result of the OPEC crisis of 1970s. It is a good example of scenerios where the cost of government action outweighs the benefits. this was due to the creation of the government-set price which would cause the quantity demanded to be more than the quantity supplied because gasoline was cheaper now.
Answer:
I think B
Explanation:
Insurance in short term is something that helps people protect themselves from losing money. So financial losses can be money.
Answer:
The international monetary fund.
Explanation:
The international monetary fund is made up of 189 countries around the world that foster global monetary cooperation, promote high employment, secure financial stability, facilities international trade, and reduce poverty. It periodically depends on the World Bank for funding.
Countries that are having problems with balance of payment can borrow money from IMF pool of resources.
In this scenario country B is unable to pay for goods bought from country A till it makes export. There is a problem of balance of trade. The IMF can help country B make the payment by borrowing it funds.
Answer:
b. The demand curve does not reflect the value to society of the good.
Explanation:
An externality is a financial term alluding to an expense or advantage caused or got by an outsider. Nonetheless, the outsider has no power over the making of that cost or advantage.
An externality can either be positive or negative which can be caused by either production or consumption of a good or service. The cost or the benefit can affect an individual or a society as a whole. A typical example of a negative externality is pollution which can cause negative cost to a third party in terms of health expenses. An example of a positive externality on the other hand is when a well educated labor force increase their productivity.
The government and local authorities can control negative externality by imposing taxes and regulation of these products. The government can also overcome negative externality by imposing subsidies on the goods that improve positive externality.
The demand curve however does not reflect the value to society of the good. It only reflects the relationship between the price and the quantity of goods consumed.
