Explain with examples that economic incentives are not as complex as we thought.

Q: What is market model?

A: A market model is a numerical portrayal of the exchanges among different members, financial powers,…

Q: Define semistrong form of market efficiency

A: Answer: Efficient market is one where the market price constitutes a balanced estimate of…

Q: Present and Explain the theories of the Yield Curve?

A: The yield curve is a curve that shows the relationship between the interest rates and the different…

Q: Using the concept of substitution and income effect, explain why means-tested transfer programs…

A: The income effect  is basically the shift in consumer consumption of items as a result of  income…

Q: ate two reasons why the strong form of market efficient is important

A: Efficient market hypothesis is very important concept in the stock market analysis and understanding…

Q: How do you calculate enterprise value?

A: Enterprise value is the measure of the total value of the company. It gives aggregate value of the…

Q: “Prevention is much cheaper than external failure.” Do you agree with this statement? Why or why…

A: There are 4 types of quality costs which are as follows:

Q: Explain how useful the price mechanism is in tackling the basic economic problem?

A: the main role of price mechanism in basic economic problem is allocate scare resources in market…

Q: If you are to choose between viability and profitability, which one would you choose? Why?

A: A company's viability indicates that it is (or has the potential to be) profitable. A profitable…

Q: What is the payback method? What are its main strengths and weaknesses?

A: Explain the meaning of the payback method.   The payback period is the expected time period which is…

Q: Define the term Trade-Off between Risk and Reward?

A: Risk-Reward trade off refers to an investment principle which indicates higher the risk, higher is…

Q: “Managers will always choose the alternative that maximizes operating income or minimizes costs in…

A: Operating income: Income that is derived from business revenues after deducting operating expenses…

Q: Indicate whether the statement is true or false, and justify your answer.Economists agree that any…

A: During the period of inflation or unemployment, government announces economy boosting fiscal…

Q: Critically discuss the efficient market hypothesis

A: Efficient Market Hypothesis: The market is effective in handling data . Markets are correctly and…

Q: Discuss how competition is essential for market efficiency.

A: In this question we need to analyze how competition is essential for market efficiency.

Q: Under what conditions is a market-based transfer price optimal?

A:

Q: List the advantages and disadvantages of the payback method.

A: Payback method is a capital budgeting method which helps to evaluate an investment based on the time…

Q: Is the accept-or-reject decision rule the same as in the simple -investment case? Explain how?

A: Yes, accept or reject decision rule is the same as in the simple investment because accept or reject…

Q: If the APT is to be a useful theory, the number of systematic factors in the economy must be small.…

A: APT (Arbitrage Pricing Theory) Alternative multi-factor assets pricing theory helps in analyzing the…

Q: What is efficient market hypothesis

A: Efficient market hypothesis is an important theory and concept in the world of finance in general…

Q: EXPLAIN ALL YOU KNOW ABOUT EMT (EFFICIENT MARKETS THEORY).

A: Efficient  market theory  also known as efficient market hypothesis  is a hypothesis that states…

Q: Explain Yield Enhancement?

A: A "yield enhancement technique" is an investment approach that includes purchasing options at the…

Q: What are some programs that an entrepreneur can use to reduce risk?

A: Businesses use various risk management programs and strategies to eliminate or minimize the impact…

Q: With example, explain the difference between induced and indirect economic impact.

A: Answer:- Economic impact definition:- An economic impact study investigates the effects of a certain…

Q: What is market efficiency?

A: Market Efficiency term is taken from a paper written by Eugena Fama in 18970. Fama acknowledges that…

Q: What are some criticisms of the payback method?

A: Payback Period: Payback period is the period in which the project recovers its initial cost of the…

Q: What are economic agents?

A: Examples of economic Agents: Departmental heads, production manager (internal agents), and supplier…

Q: Why aren't economic incentives as complex as we think?

A: Generally, an incentive means something that motivates a person to do a task/job/goal/etc.…

Q: what is Political cost hypothesis ?

A: The financial statement will be prepared by the company to know the financial position of the…

Q: What is the meaning of Resource Market?

A: In business terms, anything which acts as input and contributes to the production process refers to…

Q: What is market Value added? What is economic value added? What is the difference between what each…

A: Market value added is the amount of wealth that the company is able to create for its stakeholders.…

Q: What is the Efficient Markets Hypothesis (EMH)?

A: Efficient market hypothesis (EMH): It is other ways known as efficient market theory, could be a…

Q: what are the limitations of the Comparative advantage theory?

A: Solution- Comparative Advantage Theory-          The term comparative advantage is most frequently…

Q: What are the weaknesses of the payback method?  What other options do you have?

A: Pay back period is period required to recover initial amount of investment.

Q: What would marketers like consumers to do whendissatisfied? How can marketers encourage this?

A: Marketers are those people who form and execute marketing strategies and decisions related to it to…

Q: Why have some described the reported savings in cost-avoidance measures as “soft,” “funny money,”…

A: The company using the process to reduces the cost that increases the profit is known as cost…

Q: Why is Scenario Analysis useful?

A: Scenario Analysis is a process where various (more than one) input changes are made at the same time…

Q: In what way do free resources becomes economic resources?

A: Economic resources are indeed the tools used to carry out economic transactions. Inputs into the…

Q: What are the weaknesses of the payback method?

A: Payback period is the amount of time required for firm to recover its initial investment in projects…

Q: Is it difficult to make an exact definition of entrepreneurship

A: Business refers to an organization and entity that involves in industrial and commercial activities…