What are negative externalizes and positive externalizes? How do they affect supply and demand curves?
Please provide the best answer for the statement.
Negative externalizes result in an over allocation of resources to the production of a product. All the costs associated with the product are not reflected in the supply curve. The producer’s supply curve lies to the right of the full-cost supply curve. Positive externalizes result in an under allocation of resources to the production of a product. All of the benefits associated with the product are not reflected in the demand curve. The demand curve lies to the left of the full-benefits demand curve.
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The asset beta in the Capital Asset Pricing Model is a moderate number that measures
A) how sensitive the asset's return is to market movements. B) how sensitive the asset's discount rate is to changes in inflation. C) the risk premium on the stock market. D) the risk premium on an individual stock.
Adverse selection problems in health insurance are reduced by all of the following except: a. requiring physical exams
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