This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What does it mean to say that an individual or a firm has internalized an externality? What will ... (Read 20 times)

lilldybug07

  • Hero Member
  • *****
  • Posts: 546
on: Jun 29, 2018
What does it mean to say that an individual or a firm has internalized an externality?
 
  What will be an ideal response?

Question 2

When the economy goes into recession, the biggest increase in unem-ployment is _________.
 
  A. structural because jobs are lost in most states
  B. cyclical because jobs are lost in many industries as they cut production
  C. frictional because the creation of jobs slows
  D. the combination of structural and frictional as few new jobs are created.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ankilker

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jun 29, 2018
Answer to Question 1

Externalities are external costs or benefits that firms or consumers do not consider when making decisions. When incentives are altered such that an externality is taken into account, firms and individuals are said to have internalized the externality. So, for example, suppose I raise bees next door to your apple orchard. The bees pollinate your tress and so there is an externality. The externality will be internalized if I buy your orchard.

Answer to Question 2

B Cyclical unemployment is the unemployment resulting from a recession.


lilldybug07

  • Member
  • Posts: 546
Reply 2 on: Jun 29, 2018
Wow, this really help

bitingbit

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

Malaria was not eliminated in the United States until 1951. The term eliminated means that no new cases arise in a country for 3 years.

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

A sod house in North Dakota, 1896. Individual “bricks” of sod were hewn from the ground and stacked A sod house in North Dakota, 1896. Individual “bricks” of sod were hewn from the ground and stacked
Infants can segment adult speech into individual words.  Infants can segment adult speech into individual words. 
A factory replacement unit for a CSFI unit that has individual injectors at the ends that go into ... A factory replacement unit for a CSFI unit that has individual injectors at the ends that go into ...
The hazmat training pyramid. It is important to train from the ground up, starting with a firm grasp ... The hazmat training pyramid. It is important to train from the ground up, starting with a firm grasp ...
Niche: An individual’s ecological role Niche: An individual’s ecological role
A lesion called a plaque in the brain of an individual with Alzheimer disease. A ring of degeneratin A lesion called a plaque in the brain of an individual with Alzheimer disease. A ring of degeneratin
Video: Structure of Amino Acid, Peptide Bonds & Polypeptides

For a complete list of videos, visit our video library