Author Question: What's another term for positive externality? A) Negative externality B) Spillover cost C) ... (Read 254 times)

2125004343 · **on:** Jun 29, 2018

What's another term for positive externality?

A) Negative externality
B) Spillover cost
C) Spillover benefit
D) The pay-as-you-go principle

Question 2

A die is rolled and if the outcome is an even number, a gambler receives 10. If the outcome is an odd number, the gambler loses 10. What is the expected value of this game?

What will be an ideal response?

irishcancer18 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

C

Answer to Question 2

Probability of getting an even number = 3/6 = 1/2.
Expected value of getting an even number = 1/2 (10 ) = 5.
Probability of getting an odd number = 1/2.
Expected value of getting an odd number = 1/2 (-10 ) = -5.
Expected value of the game = 5 - 5 = 0.