Q: 38) An important financial institution that assists in the initial sale of securities in the primary…
A: At the marketplace, there are numerous financial institutions to provide different types of…
Q: Describe the optimal level of state involvement in the economy of developing countries. What are the…
A: Developing countries are those countries that are not developed but on the path of getting…
Q: True/false, no need to explain. (a) There is no perfect way to aggregate individual preferences to a…
A: (a) There is no perfect way to aggregate individual preferences to a single "social" preferences.
Q: 4. Specialization and trade When a country has a comparative advantage in the production of a good,…
A: Comparative advantage refers to the ability of the country or person to produce the good at a lower…
Q: What is the impact of monetary and fiscal policy if (a) money demand does not depend on income, LM…
A: Monetary and fiscal policy are the two powerful tools of the government that is used to bring…
Q: Explain how automatic stabilisers can slow down a recession. Explain two (2) fiscal measures the…
A: Automatic stabilizers helps in maintaining the economic balance in the country.
Q: 42) In order to reduce risk and increase the safety of financial institutions, commercial banks and…
A: The common stock of a firm serves as a representation of ownership. The company's stockholders elect…
Q: Discuss the impact of Covid-19 on the profitability of the airline industry – general and low-cost…
A: The global aviation industry is engaged in the assembly, manufacture and operation of various…
Q: Consider this problem for the next five questions: At Kahel Enterprises, a producer of orange crates…
A: The production function shows the relationship between inputs and output. The inputs and output have…
Q: Will's expenditures on food for three consecutive years, along with other values, are presented in…
A: Here, the given table shows total expenditure made on 2009, 2010, and 2011at different price level.
Q: "The world's poorest countries cannot find anything to export. There is no resource that is abundant…
A: When a comparative advantage is combined with free trade principles, even small, impoverished…
Q: Price($) 25 15 9 A B NA H -- с E i DD 0 200 300 600 700 Quantity of Wheat (thousands of bushels)…
A: When the world price lies below the equilibrium, quantity demanded exceeds quantity supplied so the…
Q: Economics recommendation of climate change to cost of food production
A: The existing food system (production, transportation, processing, packing, storage, retail,…
Q: The Reserve Bank faces pressure to begin tightening monetary policy as the cost of living continues…
A: In the IS-LM model, IS refers to Investment saving curve and LM refers to Liquidity of money curve.
Q: Assume that the demand curve for romance novels has a negative slope. If the price of these novels…
A: Demand refers to the quantity that a consumer is willing to buy at certain time and place . and if…
Q: A man bought an eqpt costing P500k payable in 20 semi annual payments with i = 12% , determine each…
A: Compound interest, also known as Interest on Interest, is interest that is added to the interest…
Q: "Suppose an economy with output at the natural level and there is an increase in consumer…
A: An rise in consumer confidence might cause AD to move to the right.
Q: a. Initially, M $61,140 and PR - $6. Find the "reduced" demand equ b. Find the inverse demand…
A: A shortage is defined as a situation where the demand quantity for a given good exceeds the quantity…
Q: Required: ; . Calculate the net present value of the investment.
A: Net present value (NPV) is the difference between the present value of cash inflows and the present…
Q: Part 2 : You are examining a firm that is under a perfectly competitive market. Show all necessary…
A: Introduction Perfectly competitive market is the market where lots of firm are available in the…
Q: Which of the following are macroeconomic issues? (Select all that apply.) Where will Google locate…
A: Macroeconomics is all about studying the economic issues at the whole or national or aggregate level…
Q: A Phillip's curve is given by π = n + 10% - 2u, where n = π-1 and also Tt-12%. Calculate the natural…
A: Phillips curve is known as inflation augmented Phillips curve and it has a formula-- ∏=πe-hu-un,…
Q: Part 2 : You are examining a firm that is under a perfectly competitive market. Show all necessary…
A: Some of the basic concept that is necessary to solve the above problem: Profit = Revenue - Total…
Q: 6.) Government intervention arises from market failure and often includes which of the following?…
A: When there is a market failure, it is important to reallocate resources or change the incentives…
Q: > A Moving to another question will save this response. Question 18 Velocity of money depends on all…
A: Velocity of Money measures the rate at which money is exchanged in the economy. The formula is MY =…
Q: Ricardian Model. Consider two countries: A and B. Labour is the only factor of production for goods…
A: Introduction We have two countries: A and B. Labor is the only factor of production for goods X and…
Q: So is it D or B
A: The answer is - B. Revoke the license of an insolvent insurer.
Q: On the following graph, use the orange points (square symbol) to plot Caroline's free-throw…
A: The marginal cost of production and marginal revenue can be used to maximise product output and…
Q: 2), Airbus and Boeing, in the market. Each firm’s cost is MC=AC=20. The market demand is Q=100-(1/2)…
A: Cournot competition is an economic model in which competitors independently determine production at…
Q: Which of the following represents a social benefit? Group of answer choices The satisfaction of…
A: Externality: - it is a cost or benefit generated for the third party by the actions of other people.
Q: Suppose that when your income is $45, the price of ice cream cones is $1.50, and the price of…
A: In this case, the main point is that we have to know income effect and substitution effect. Actually…
Q: Banks are often accused of collusion. Valid- ate the extent to which collusion is possible in the…
A: Collusion is a formal or informal agreement between competing businesses to fix prices for goods or…
Q: The table below shows the marginal willingness to pay for a group of consumers. If the price…
A: Here, the given table shows the marginal willingness to pay of a group of 15 consumers.
Q: symbol) on the following graph to show the aggregate demand curve (AD₂) after the multiplier effect…
A: In macroeconomics, a multiplier is a component of proportionality that actions how much an…
Q: J 7 (1) Suppose that the mark-up of goods prices over marginal cost is 25% (0.25), and the wage…
A: The Phillips curve shows the inverse relationship between the inflation rate and the unemployment…
Q: Ricardian Model. Consider two countries: A and B. Labour is the only factor of production for goods…
A: Absolute advantage refers to the situation where a country specializes in the production of a…
Q: (a) If economy A grows annually at a rate of 1% and economy B grows annually at a rate of 2%.…
A: Answer - "Thank you for submitting the questions.But, we are authorized to solve one question at a…
Q: Refer to the diagram below. On 19 May 2022 the Hydrangea Ville Reserve Bank's Monetary Policy…
A: The Phillips curve is the curve that represents the short-run relationship between expected…
Q: Where do you stand on the controversial encryption issue? Should governments like the United States…
A: We show It is important that governments have a secret key to all encrypted communications. Ngu and…
Q: 4. Researcher is using data for a sample of 100 household to estimate the relation between daily…
A: We have regression equation Y= b0 +b1X
Q: 7
A: The aggregate demand curve shows the inverse relationship between the price level and the total…
Q: Question 3 Velocity of Money is V=(PXY)/M V=(YXM)/M V=(PXY)/Y O V-Money/(PXY)
A: Velocity of money tell us the how much times a $ change hand in a given time frame.
Q: "Assume that consumers' confidence about their expected future income increases. As a consequence,…
A: Consumer Confidence:- Consumer confidence can be explained as an economic concept that gauges…
Q: Explain, using appropriate diagrams, how a rise in the household saving rate can cause a fall in…
A: GDP is the value of final goods and services produced in the country within a given period of time.
Q: Part 1 : Answer the following Games below. For each game below, please illustrate and show how the…
A: "In game theory, a payoff matrix depicts the possible payoffs of the players resulting from each…
Q: In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10…
A: The measure that depicts the exchange of goods and services among entities or countries in lieu of…
Q: how would an increase in the price of Starbucks coffee effect the CPI and GDP deflator? both…
A: The consumer price index (CPI) measures the overall value of goods and services bought by consumers.…
Q: Economics Suppose that marginal revenue is given by MR(q) = q³ (q3 + 1)-1. Find the function R(q)…
A: The marginal revenue is the revenue that is additional revenue generated by selling given units of a…
Q: If the increase in government spending is $500 and the marginal propensity to consume is .75 then…
A: The change in the real gross domestic product depends on the value of the marginal propensity to…
Q: What treaty attempts to regulate the global weapons trade? Explain what this treaty entails.
A: Treaty is an agreement that is made between the countries in international market.
An interest rate of 21 percent per year, compounded every four months, is equal to what rate per year is effective?
Step by step
Solved in 2 steps
- Which of the following has the highest future value? A. $100 saved for 2 years at 10 percent interest B. $130 saved for 2 years at 7 percent interest C. $120 saved for 2 years at 8 percent interest D. $110 saved for 2 years at 9 percent interestA bank account pays 4 percent interest per year. If you deposit $1,000 into this account at the start of each year for three years, how much will your account balance be at the end of three years? Multiple Choice $3,122 $3,246 $3,600 $4,206An investor deposits a sum of Rs 100,000 in an investment company with a promise of a rate of return of 18 percent per year. What will the sum amount be at the end of 5 years if the interest is added (i) yearly, (ii) six-monthly, (iii) quarterly, (iv) monthly, and (v) continuously.
- Suppose Kay inherits $250,000, which she invests today at a rate of return of 9 percent compounded annually. Who much will Kay's investment be worth in 25 years?Using 12 percent simple interest per year, how much interest will be owed on a loan of $500 at the end of two years?A bond with a face value of $7,000 pays quarterly interest of 2.5 percent each period. Twenty-two interest payments remain before the bond matures. How much would you be willing to pay for this bond today if the next interest payment is due now and you want to earn 8 percent compounded quarterly on your money? table of compound interest factors for discrete compounding periods when i=2%.
- Suppose Asian Beauty, a Japanese and Korean style women’s cosmetics retail company in downtown Toronto, is to issue $3 million 30-year bonds with an 8 percent annual coupon payment. Assume the required return 10 percent, and the corporate tax rate is 35 percent. What will be repayment in the maturity?The adjacent table presents annuity factors for various discount rates and payment periods up to 10 years. The present value of $80,000 per year for 10 years at a discount rate of 4 percent is $Jamie is considering leaving her current job, which pays $75,000 per year, to start a new company that develops applications for smart phones. Based on market research, she can sell about 50,000 units during the first year at a price of $4 per unit. With annual overhead costs and operating expenses amounting to $145,000, Jamie expects a profit margin of 20 percent. During the first year, Jamie is using her savings to cover total costs. Current annual rate of return on saving is 2.1%. This margin is 5 percent larger than that of her largest competitor, Apps, Inc. If Jamie decides to embark on her new venture, Accounting costs: Economic costs: Opportunity costs:
- Jamie is considering leaving her current job, which pays $75,000 per year, to start a new company that develops applications for smart phones. Based on market research, she can sell about 50,000 units during the first year at a price of $4 per unit. With annual overhead costs and operating expenses amounting to $145,000, Jamie expects a profit margin of 20 percent. During the first year, Jamie is using her savings to cover total costs. Current annual rate of return on saving is 2.1%. This margin is 5 percent larger than that of her largest competitor, Apps, Inc. Accounting costs? Economic costs? Opportunity costs? Suppose that Jamie’s estimated selling price is lower than originally projected during the first year. How much revenue would she need in order to earn positive accounting profits? Positive economic profits?You want to buy an ordinary annuity that will pay you $4,000 a year for the next 20 years. You expect annual interest rates will be 8 percent over that time period. The maximum price you would be willing to pay for the annuity is closest to:You have just made your first $5896 contribution to your retirement account. Assume you earn a return of 10.8 percent per year and make no additional contributions. What will your account be worth when you retire in 45 years?