Question

A new bakery opens downtown. Which circumstance would most likely be a negative externality?

Customers of the old bakery see a drop in prices.
Neighboring stores get more foot traffic.
The city government collects added tax revenue.
The old bakery down the street loses some customers.
@jim_thompson5910

Answer 1

@perl

Answer 2

What is a negative consequence of the new bakery opening? Specifically this negative consequence falls on a third party.

Answer 3

i think its either b or d..

Answer 4

why those two

Answer 5

theyre not good.. so theyre negative externalities lol sorry its the only way i can really explain it right now

Answer 6

hmm I guess b is up in the air for me.

It could be positive if the people spend money at the stores

or

it could be negative if they simply browse and cause more congestion

Answer 7

okay so u think its B?

Answer 8

a classic example of negative externality is something like pollution. That's usually bad no matter how you look at it. People not involved in the production or consumption of the product have to deal with the negative consequences of pollution

Answer 9

I don't know what to make of B tbh. It depends on what the people do. If they spend money there, then it's not a negative externality

Answer 10

okay so D?

Answer 11

yeah that seems like a negative consequence that burdens a third party

then again, it seems odd how they pull out this example since this is a natural result of competition, so it doesn't seem negative to me. Competition is natural, healthy and a good thing (as opposed to pollution, which is unnatural, unhealthy, etc)

Answer 12

lol u over think things way too much ahah

Answer 13

You might be onto something with B. But I'm not sure. If the people increase the pollution with liter or something, then that's definitely a negative

Answer 14

lol

Answer 15

okay are u able to help with more questions please??

Answer 16

Which of these illustrates the use of currency rather than barter?

Felicia mows lawns in order to get a smartphone from her parents.
Mallory wins a savings bond in the school science fair.
Martin works for his uncle for four hours in exchange for lunch.
Sasha gives a cashier two dollars to receive a bag of chips.

Answer 17

which one do you think it is?

Answer 18

D?

Answer 19

why D

Answer 20

because shes using money to get the chips

Answer 21

correct, currency is something nearly everyone accepts in exchange for a product or service

A and C are examples of bartering (exchanging products and/or services)

B isn't a currency because you can't buy groceries with a savings bond on its own. You have to pull currency out of the bond (in dollars for example) to buy groceries.

Answer 22

I guess B is a barter as well

Answer 23

yaayyy! thank u so much! i have more

Answer 24

Unemployment is rising, and the federal government wants to encourage job growth. Which of the following actions would be an appropriate fiscal policy?

Expand open-market operations
Increase spending on infrastructure projects
Lower discount rates
Raise taxes on small businesses

Answer 25

hint: fiscal policy deals with taxing and spending

Answer 26

monetary policy deals with the money supply (and the interest rate associated with it)

Answer 27

C? @jim_thompson5910

Answer 28

the discount rate is associated with monetary policy

Answer 29

there are 2 basic fiscal ways to encourage economic growth

1) lower taxes. This means people have more money to spend since this amount isn't taken as taxes

2) increase spending on projects that create jobs. This puts money in people's pockets for them to spend

Answer 30

so which one?

Answer 31

you tell me

Answer 32

2?

Answer 33

yep the "lower taxes" option isn't listed

Answer 34

okay gotcha

Answer 35

so its Increase spending on infrastructure projects

Answer 36

Tina has $1,500 that she will use to buy a car in four months. In the meantime, she would like to invest it to earn more money. Which of these would yield the greatest return in her time frame?

Money market account
Roth IRA
Savings account
Savings bonds

Answer 37

I'm not sure about this one, but I know an IRA is for retirement. So that means the money needs to sit in the account for a very long time (say 30 years and not 4 months).

Answer 38

okay i'll figure that one out later what about this one? @jim_thompson5910

Answer 39

After creating the 2013 budget for her hamburger restaurant, Holly finds business is down. She decides to increase advertising to 15 percent of her budget. Which of these could reflect the change in Holly's new budget?

Misc 0%; Rent 25%
Supplies 20%; Rent 25%
Misc 0%; Supplies 20%
Utilities 5%; Repairs 0%

Answer 40

Does Molly have control over the rent price/cost?

Answer 41

idk lol

Answer 42

no she does not

and she cannot decide something like "hmm I think I'll pay half of the rent this month, and 25% of the rent next month". She has to pay the full rent every month or risk getting kicked out

Answer 43

hahahha oh okay i get it

Answer 44

would it be B?

Answer 45

It sounds like you're randomly guessing. Again, the rent percentage can't be reduced based on her desire alone.

Answer 46

im not i was doing good on all the others.. im actually trying my best @jim_thompson5910

Answer 47

the rent percentage must stay at 30% assuming her budget stays the same

Answer 48

since business has been lousy for her, the revenue would be down which means that the rent percentage would increase

example:

in 2013, say the revenue is $100 and the rent is $30. That's 30/100 = 0.3 = 30% of the revenue

in 2014, now say the revenue drops to $80. The rent would stay at $30 or probably increase due to inflation. Let's assume it stays at $30. So, 30/80 = 0.375 = 37.5% so the rent percentage increased

Answer 49

oh okay so would the answer be C?

Answer 50

either that or D

both of these options seem unreasonable though since there's always going to be some misc cost (like insurance) or something that needs to be repaired

utilities are another fixed cost, but they can be controlled because you can use less water or electricity

Answer 51

okay so just go with C

Answer 52

@xapproachesinfinity wat do u think?

Answer 53

James wants to go on a trip to Italy this month. The trip will cost five thousand dollars. He has saved three thousand dollars. Which of these actions is least financially risky?

Put the rest of his expenses on a credit card
Take out a bank loan to finance the trip
Delay travel until he has saved the rest of the money
Use money from his retirement account

Answer 54

@jim_thompson5910

Answer 55

your thoughts on this?

Answer 56

A? i really am not sure

Answer 57

are credit card interest rates very low? or very high?

Answer 58

i have no idea

Answer 59

oh no nvm theyre very high

Answer 60

yes, like 22% or 29%

normal interest rates are around maybe 3% to 10%

so credit card interest rates are very high because it's very risky

Answer 61

so A's the answer?

Answer 62

it asks `Which of these actions is LEAST financially risky?`

Answer 63

C

Answer 64

@jim_thompson5910

Answer 65

good, that's the smartest move he can do

Answer 66

okayy!

Answer 67

Creative Commons Attribution-Share Alike 3.0 Unported

Which of the following statements best explains why the red bar goes up when the blue goes up?

Equivalent spending and taxing does not allow for debt reduction.
Higher spending than taxing results in a deficit, which contributes to more debt.
Higher taxing than spending results in a deficit, which contributes to more debt.
Higher taxing and higher spending result in more debt.

Answer 68

@jim_thompson5910

Answer 69

When a country spends more than what it makes in taxes, then it runs a deficit. Each deficit (from year to year) increases the national debt.

Answer 70

so B?

Answer 71

yes

Answer 72

Which of these is a natural monopoly?

Cell phone service
Computer repair
Package delivery service
Sewage treatment

Answer 73

your thoughts?

Answer 74

i have no idea

Answer 75

which option makes sense to have only one provider?

Answer 76

B?

Answer 77

why B?

Answer 78

u only need one provider

Answer 79

so there's only one computer repair place out there?

Answer 80

idkk i think none r the answer right now tbh

Answer 81

hint: this is something where it makes sense to be controlled (and owned) by the government

Answer 82

sewage treatment?

Answer 83

correct

Answer 84

yaaayyyy!

Answer 85

btw u werent sure about this question and i skipped it what should i pick?

Answer 86

Tina has $1,500 that she will use to buy a car in four months. In the meantime, she would like to invest it to earn more money. Which of these would yield the greatest return in her time frame?

Money market account
Roth IRA
Savings account
Savings bonds

Answer 87

I'm still not sure, so I would ask another user or ask in a different section

Answer 88

alrightie! thank you so much for your time jim! greatly appreciate it!

Answer 89

np