Question
Please provide the correct options Is the converse true? Explain. A change that passes the cost-benefit test A. is a Pareto improvement because everyone is
Please provide the correct options
Is the converse true? Explain. A change that passes the cost-benefit test
A. is a Pareto improvement because everyone is a winner.
B.is a Pareto improvement because there are benefits.
C.is not a Pareto improvement because someone could be harmed.
D.is a Pareto improvement because benefits exceed the costs.
E.is not a Pareto improvement because deadweight loss may not be reduced.
When Star Wars Episode III: Revenge of the Sith opened at 12:01 A.M., Thursday, May 19, 2005, the most fanatical Star Wars fans paid $50 million for tickets to stay up until 3:00 to 4:00 A.M. Businesses around the country, especially those tied to high-tech industries, suffered reduced productivity due to absent (suffering from Darth Vader flu) or groggy workers on Thursday and Friday. By one estimate, fan loyalty cost U.S. employers as much as $627 million (Josie Roberts, Pittsburgh
Tribune-Review ,May 19, 2005). On the other hand, this sum is chicken feed compared to the estimated $890 million loss during NCAA March Madness: 16 days of the virtually nonstop college basketball games (James Paton, "Hooky and Hoops-March Rituals," Rocky Mountain
News , March 19, 2005: 3C). Are these examples of a negative externality? Explain.
A.Yes, but the firms should have greater control on their employees' after-work activity; it is not the employees' responsibility.
B.No, it is actually a positive externality; the satisfaction from Revenge of the Sith left a favorable lasting impact on culture.
C.Yes, but everyone agrees the loss in productivity and output was well worth the satisfaction gained from the activity.
D.Yes, the games and movies clearly affect people's work performance.
In 2015, Lloyd's of London, a major global insurer, concluded that a chain reaction of floods, drought, and related diseases could cripple the world's food supply. What actions can firms and individuals take to mitigate the risks they face?
To mitigate the risk of a world food shortage, firms and individuals could
A.produce different types of food.
B.switch from growing crops to raising livestock.
C.consume only domestically-produced food.
D.obtain food from only one geographic location.
E.grow only one type of crop.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started