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

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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

Economics - Financial Markets
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What is a negative consequence of the new bakery opening? Specifically this negative consequence falls on a third party.
i think its either b or d..

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Other answers:

why those two
theyre not good.. so theyre negative externalities lol sorry its the only way i can really explain it right now
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
okay so u think its B?
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
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
okay so D?
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)
lol u over think things way too much ahah
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
lol
okay are u able to help with more questions please??
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.
which one do you think it is?
D?
why D
because shes using money to get the chips
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.
I guess B is a barter as well
yaayyy! thank u so much! i have more
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
hint: fiscal policy deals with taxing and spending
monetary policy deals with the money supply (and the interest rate associated with it)
the discount rate is associated with monetary policy
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
so which one?
you tell me
2?
yep the "lower taxes" option isn't listed
okay gotcha
so its Increase spending on infrastructure projects
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
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).
okay i'll figure that one out later what about this one? @jim_thompson5910
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%
1 Attachment
Does Molly have control over the rent price/cost?
idk lol
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
hahahha oh okay i get it
would it be B?
It sounds like you're randomly guessing. Again, the rent percentage can't be reduced based on her desire alone.
im not i was doing good on all the others.. im actually trying my best @jim_thompson5910
the rent percentage must stay at 30% assuming her budget stays the same
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
oh okay so would the answer be C?
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
okay so just go with C
@xapproachesinfinity wat do u think?
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
your thoughts on this?
A? i really am not sure
are credit card interest rates very low? or very high?
i have no idea
oh no nvm theyre very high
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
so A's the answer?
it asks `Which of these actions is LEAST financially risky?`
C
good, that's the smartest move he can do
okayy!
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.
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.
so B?
yes
Which of these is a natural monopoly? Cell phone service Computer repair Package delivery service Sewage treatment
your thoughts?
i have no idea
which option makes sense to have only one provider?
B?
why B?
u only need one provider
so there's only one computer repair place out there?
idkk i think none r the answer right now tbh
hint: this is something where it makes sense to be controlled (and owned) by the government
sewage treatment?
correct
yaaayyyy!
btw u werent sure about this question and i skipped it what should i pick?
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
I'm still not sure, so I would ask another user or ask in a different section
alrightie! thank you so much for your time jim! greatly appreciate it!
np

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