II. Considering that a controlled economy like China has been far more successful in dealing with the Corona Pandemic than a liberal economy like the US, would you say that this is a case of market failure? How does this pandemic represent an externality?

In a recent annual report, apple computer reported the following in one of its disclosure notes: "warranty expense: the company provides currently for the estimated cost for product warranties at the time the related revenue is recognized." this note exemplifies apple's use of: (a) conservatism.(b) matching. (c) realization principle. (d) economic entity.