X Suppose there is a permanent decrease in demand for buffet-style restaurants. Explain how you think this would impact profits for firms in that market in the short run, and in the long run. Use the concept of externalities to explain why if left to private decisions, the usage of face masks to prevent the transmission of COVD-19 is likely to be inefficiently low. Consider the individual described below. Which type of unemployment would you suggest that they most likely belong to? Explain. A man who used to work as a plumber left his job to take one year away from work to look after his baby son. His old job is no longer available. He is now applying for jobs hoping to re-enter the workforce again as a plumber. His wife is worried that it will be difficult to find a job in the current economic environment due to COVID- 19, but he thinks there will still be good demand for plumbers. Explain why it would generally not be considered wise economic policy for a government to attempt to achieve a balanced budget every year. 1047/5000 Question 3 1 pts Which of the following statements is false? O The definition of reporting entity forms the foundation of the Conceptual Framework as all other elements flow from it. O A reporting entity must prepare general purpose financial reports that comply with accounting standards. O Political or economic importance is a factor in determining whether an entity is a reporting entity. O The objective of general purpose financial reports is to provide information that is useful to existing and potential investors, creditors and other external users