This topic contains a solution. Click here to go to the answer

Author Question: Which of the following gives rise to a positive externality? A) Sudden increase in the price of ... (Read 65 times)

AEWBW

  • Hero Member
  • *****
  • Posts: 579
Which of the following gives rise to a positive externality?
 
  A) Sudden increase in the price of oil due to a supply shock
  B) Sudden increase in the demand for diamonds leading to an increase in their price
  C) Deforestation leading to the extinction of many species
  D) Consumption of a drug to cure a communicable disease

Question 2

Explain the principal-agent relationshi
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

emsimon14

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

D

Answer to Question 2

In a principal-agent relationship, the principal designs a contract specifying the payments to the agent as a function of his or her performance, and the agent takes an action that influences performance and thus the payoff of the principal.




AEWBW

  • Member
  • Posts: 579
Reply 2 on: Jun 29, 2018
:D TYSM


jojobee318

  • Member
  • Posts: 298
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

The human body's pharmacokinetics are quite varied. Our hair holds onto drugs longer than our urine, blood, or saliva. For example, alcohol can be detected in the hair for up to 90 days after it was consumed. The same is true for marijuana, cocaine, ecstasy, heroin, methamphetamine, and nicotine.

Did you know?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

For a complete list of videos, visit our video library