Ethically probably harder,
Answer:
The correct answer is c. Derived demand
.
Explanation:
Derived demand is the demand for goods and services that is generated as a result of the demand for other goods and services. This type of demand usually corresponds to the demand for factors or products, since the demand for a good or service may be related to the process necessary to produce another good or service, although it can affect both producers and consumers.
Derived demand can sometimes lead to an increase in the price of a marginal product, since the demand for the resources needed to produce a physical product also increases.
Answer:
<u>Information asymmetry.</u>
Explanation:
Information asymmetry is characterized as a market failure that causes power imbalance. This occurs when some party involved has more information than another party.
This situation is becoming more widespread in microeconomics, as it interferes with the classic concept that the free market must follow the concept of perfect competition.
But information asymmetry is a market failure that directly impacts business relationships, and causes cases of adverse selection and moral hazard.
Ideally, there should be greater transparency in the financial statements that are required to be published so that the risk of information asymmetry between the company and investors is reduced.
Answer:
D) Income will increase by $10,000.
Explanation:
The balanced budget multiplier measures the change in aggregate output when government spending increases by increasing taxes. The formula for determining the balanced budget multiplier is by adding government expenditures multiplier and the tax multiplier. The balanced budget multiplier is always equal to one, therefore the net change in aggregate production (income) is equal to the increase in government spending.