b) Higher birth rates; c) Vaccines d) Pollution. 2) Capitalism is characterized

Question

b) Higher birth rates; c) Vaccines d) Pollution. 2) Capitalism is characterized by... a) A central power that decides on the allocation of resources; b) Defending that wealth depends on the accumulation of precious metals; c) Private property and freedom to establish contracts; d) Defending that all wealth comes from land/agriculture. 3) The producer surplus is... a) The excess of demand over supply; b) The amount that producers receive in excess of the amount necessary for them to produce c) The excess of supply over demand; d) The value that consumers derive from a good in excess of what they have to pay 4) Demand might be affected by... a) Prices of related goods; b) Cost of inputs; c) Technology d) State reoulatinn lation of economie activitie

Explanation / Answer

(1) Options are hazy and cannot be read. However, Pollution is definitely a negative externality because it causes social damage, costs of which are not borne by the economic agent which creates the pollution.

(2) (c)

A feature of capitalism is established private property rights and free market economy.

(3) (b)

Producer surplus = Actual price received by producers - Minimum acceptable price (Cost)

(4) (a)

If price of a substitute (complement) good increases, demand for a good increases (decreases), and if price of a substitute (complement) good decreases, demand for a good decreases (increases). Other options are supply side factors only, not affecting demand.

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.