-A tornado siren
-national defense (one of most expensive)
-uncongested toll road
-fireworks if displayed in town with many residents, but not a Disney world b/c visitors pay to see display
-general knowledge vs. research- research can be excludable if patented, g.k. is always a public good-a mathmatetician can't patent a theorem
-advocates of antipoverty programs claim that fighting poverty is a public good
-similar to an externality-something of value has no price attached to it
-people have incentive to be free riders (fireworks)
-Why tragedy of commons?- social and private incentives differ
-arises because of an externality- someone's use of something diminishes another
-govt impose fees and regulate behavior to mitigate overuse
-EX: open grazing, clean air and water, congested roads, wildlife
-environmental degradation is a modern TOC
Sets found in the same folder
Other sets by this creator
Why is a long-run supply curve flatter than a short-run supply curve? Select one:
A. Firms can enter and exit a market more easily in the long run than in the short run.
B. Long-run supply curves are sometimes downward sloping,
C. Competitive firms have more control over demand in the long run.
D. Firms in a competitive market face economies of scale in the long run.
Until December 1991, Russia was part of the Union of Soviet Socialist Republics (USSR). The USSR was also called the Soviet Union. The Soviet Union was run by a centralized government in a planned economy. In a planned economy, the central government controls all resources and makes all decisions about their use. Enterprises are told what to produce in order to meet national objectives.
In December 1991, the USSR was dissolved. The former USSR became 15 independent countries. Russia, the largest of the countries, is approximately 6.5 million square miles. It covers nine time zones. The country has over 140 million consumers. Many foreign companies would like to enter a new market of that size.
But there are also many limiting factors foreign companies must consider. The transition away from central control has not been complete. The government still controls many industries. In industries not totally controlled by government, many new laws interfere with business matters. Most business is transacted in Russian. Therefore, interpreters must be hired. Most imports are subject to high tariffs and severe quotas.
In the United States, businesses follow generally accepted accounting principles (GAAP) to ensure fair and accurate financial reporting. Russian accounting rules are called Russian Accounting Standards (RAS). RAS are designed to support tax authorities. Therefore, they follow Russian tax laws.
- Use the Internet to research Russia and International Financial Reporting Standards (IFRS). (IFRS were discussed in the Global Awareness feature in Chapter 10.)