Legt2751 Notes for Midsem

Examples of gifts and payments include but are not limited to: meals, travel and travel accommodations, tickets to

B) An individual can inadvertently make a gift by underestimating a property's fair market value and selling it to a relative for a price below its fair market value.

2) An example of a good with an external cost includes A) Jess smoking near her non-smoking roommate. B) electricity generation that produces carbon dioxide emissions that contribute toward global warming. C) All of these are examples of mixed goods with external costs. D) noise pollution from aircraft.

1. This question addresses the effect of Microsoft’s software capitalization policy on its financial statements. Ignore any potential tax effects.

3. Pollution is considered by most a negative externality. Some economists would like to see the costs of these burdens incorporated into the price of goods that we buy. For instance, since coal fire power plants increase emissions that could potentially lead to climate change, these economists believe that the price we pay for electricity is not adequately high enough. Draw a completely labeled graph and illustrate on the graph how much higher electricity prices would be if the full costs of electricity production were taken into account. You do not need to provide actual numbers; rather, show on the

rates of each political government. When a political government sets the tax rate it is recorded in

This has caused most individuals to contribute to a productive economic system, seeking to do or make something that others will pay for, or they will work for an organization that makes products or provides services that are purchased and used by others. We have concluded that having the desire to have the

The meaning of gift in dictornary.com states that its something given voluntarily without payment in return, as to show favor toward someone, honor an occasion, or make a gesture of assistance. The meaning of gift has changed over time and people view gifts differently. However, to me the meaning of gift is being able to help people in way that can impact them in a positive way without having to give presents. Therefor, I thought of you Mrs. McNary.

The demand for products that provide benefit externalities is generally ________ the demand for products that do not. Marks:

The "economic buyer" view of consumers says that individuals will only buy the cheapest goods and

Negative externalities are detrimental third-party effects caused by the production and/or consumption of a good. A public good is a good provided free of charge to the consumer, by the government. A public good is non-excludable and non-rivalrous. A merit good is a good that gives positive externalities upon production and/or consumption. A merit good is non-excludable, yet rivalrous.

has granted the community with life, food, shelter, and has provided them with the values, norms

(C) Externalities -- Companies produce some type of external cost that affects the community. The company would not voluntarily reduce or

Gifts that are a part of your regular expenditure out of income and which does not decrease your net income below the amount needed to maintain your normal living standard;

(ii) Government production at lower priceswe have a direct governmental influence on allocation because the government itself undertakes the responsibility of the production of the positive external good. supplies it at a lower price, in some cases free of charge