Factors that affect the entire economy and all its participants can be associated with External Factors Microeconomic environment Financial Institutions Macroeconomic environment
Q: How does asymmetric information affect the process of transferring resources from surplus to deficit…
A: Asymmetric information: - It is a condition where one party involved in an economic transaction has…
Q: Investment projects can be viewed as analogous to bank loans. True or false?
A: An investment project is a proposal that includes information on the expenditure of the planned…
Q: Lowering the taxes on income can help in expanding the activities in the financial market. True or…
A: Tax in the compulsory payment made by the individual or institution to the government without…
Q: discuss the notion of efficient markets when extended to international financial markets.
A: According to the Efficient Market, all stocks trade at their true value. The idea believes that…
Q: If a government requires domestic banks to lend to certain industries, creating a situation in which…
A: Central bank is called the apex institution which regulates the monitoring of the commercial banks.…
Q: Explain the Efficient Market Classification and discuss its role in policy making
A: Market efficiency depicts how there can be a degree that can note how there can be market prices…
Q: What are the positive and negative impacts of IMF financing
A: Positive impacts of IMF financing. Answer: Member nations can avail of loans from the IMF. Member…
Q: 4- Demand, Competitions and distribution chain are factors relating to: a. Macroeconomic…
A: Macroeconomics can be defined as the field of study in economics that relates to the overall…
Q: 45- Factors that affect the entire economy and all its participants can be associated with: a.…
A: Microeconomics is more concerned with individual markets, while macroeconomics is concerned with…
Q: how does distortion affects the financial and economic values of the tradable and non-tradable goods
A: Market distortion: It refers to the increase prices of the goods and services. It is basically the…
Q: Discuss the reasons for 2008 Global Mortgage Crisis. Please limit your report to no more than 300…
A: Financial deregulation was the root cause of the financial crisis. This allowed banks to trade hedge…
Q: Define “financial frictions” in your own terms
A: Financial frictions provides a set of conditions which prevent financial markets from effectively…
Q: The budget can be seen as a contract of presidential and congressional promises to supply funds for…
A: No, the budget cannot be seen just as a contract for the promises made on presidential &…
Q: Providing tax shelters through investment is one of the main functions of the financial system. *…
A: Tax shelters are necessary, despite the fact that they are sometimes seen negatively. Individuals…
Q: What is the main objective and sources of public finance? According to macro economics
A: Public Finance is referred to as government activity that includes taxation, government spending and…
Q: Predict how each of the following economic changes will affect the equilibrium price and quantity in…
A: Answering only the top three scenarios, as requested 1. When the number of people at the most common…
Q: The two most important functions of central banks are to: Question 12 options: a) execute…
A: Central bank is referred as bankers bank. It helps commercial banks and the financial system at the…
Q: Identify and summarize the market dynamics triggered by changes in leakages and injections
A: A circular flow of income represents the flow of exchange of goods and services, money between the…
Q: Which of the following is a government function that regulates the economy to ensure that it…
A: The government of a country is responsible for fair and smooth functioning in the country. To…
Q: Why aren't more resources being allocated to sufficient prudential oversight of the financial system…
A: Countries where there are more working women, quantity of workers is more. People who are working…
Q: What is the relation between social economic and the financial crisis? What is the impact of…
A: Solution: Economics: It is the study of understanding different aspects of economy. Economy: It is…
Q: In the monetary perspective: -Discretionary monetary policy is the most effective way to moderate…
A: Monetary policy: The monetary policy is adopted by the central bank to endure the price stability…
Q: Suppose there are no firms, only the government and households. What would the total demand for…
A: The above statement is not valid.
Q: Robust internal capital markets are an effect of firms benefitting from Group of answer choices…
A: Capital Market: In contrast to a money market, where short-term debt is purchased and sold, a…
Q: Predict how each of the following economic changes will affect the equilibrium price and quantity in…
A: Whenever demand rises, the demand curve will shift to the right and whenever demand falls, the…
Q: What has been the impact of the Supreme Court ruling in Citizens United v. Federal Election…
A: The Supreme Court of the United States is the country's highest court. It is the judicial branch of…
Q: Should governments restrict personal freedoms during times of economic crisis? Explain your answer.
A: Economic Crisis The term economic crisis refers to a circumstances in which a country's economy…
Q: All the participants in the financial system can be both demanders and suppliers of funds. A. the…
A: In a financial market, those who save money are on the supply side and those who borrow money are on…
Q: political environment of Norway a.) The stability of the Norway Government b.) Future political…
A: Answers (A) Norway have scored 0.58 points out of 2.5 points in the Political Stability index 2017 .…
Q: For the last 50 years or so, republicans and democrats at the national level have each favored…
A: The impact of a tax cut, Increase spending, Higher economic growth, Government borrowing, government…
Q: Role of government and financial intermediaries in the recovery – fiscal and monetary policies.…
A: Recovery is the phase after recession. Government and financial intermediaries play a key role in…
Q: Fiscal policy refers to a) the spending and taxing policies used by the government to influence the…
A: Governments' economic policy encompasses taxation, budgeting, the money supply, and interest rates,…
Q: straightforward example of a ____________, often used for simplicity, is the interest rate. Group…
A: 1. Price ceiling is the maximum price fixed by the government which is kept below the market price,…
Q: One of these four answers increases the demand for financial capital. Which one? Group of answer…
A: When talking about financial capital, it is the requirement of the funds by the firms to deal with…
Q: Suppose that Antonio, an economist from an AM talk radio program, and Caroline, an economist from a…
A: Answer:
Q: Outline the main reasons for the Australian government introduction of a set of policies described…
A: Traveling between Australian colonies was difficult due to trade restrictions; free traders were…
Q: Crowding out due to government borrowing occurs when: Group of answer choices higher interest rates…
A: Fiscal policy signifies a series of actions pursued by the federal government with an aim to…
Q: The Chairman of the Federal Reserve has been given the title as “The 2nd most powerful person in the…
A: Fed - Central bank of USA. It is an independent body. It has authority to increase or decrease…
Q: Which of the following represents the maximum amount the economy can produce while maintaining price…
A: In an economy, GDP is computed using different approaches, such as potential, nominal, real, and…
Q: Which of the following is not a common result of Foreign owning large amounts of Home’s debt? A.…
A: When a foreign country owes a large amount of Home's debt then it is like an outflow of capital from…
Q: The Federal Open Market Committee (FOMC) consists of 7 members of the Board of Governors and 5…
A: The Federal Open Market Committee is a committee that holds eight scheduled meetings regularly per…
Q: The government safety net creates ________ problem because risk -loving entrepreneurs might find…
A: Government safety net refers to the phenomenon in which a guarantee is given by the government that…
Q: What are one similarity and one difference in government policies between the COVID-19 pandemic and…
A: Similarity among COVID-19 pandemic and the great financial crisis is that there is an economic…
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- The world in which we live is complex and to understand it, human beings make use of some orother simplification process. A theory can accordingly be seen as an attempt to simplify things.Such an observation may come as a surprise to those who have often heard remarks to the effectthat such and such a theory is difficult, or at the least terribly complicated. We should neverthelessremind ourselves that a theory involves an attempt to simplify things – it is the world out there thatis the complicated entity. A particular theory (or model) is merely trying to reduce it to manageableproportions, at least as far as understanding our environment is concerned.”In economics, theory is presented in a simple form by making the…1.23a) Post hoc assumptionb) Fallacy of compositionc) Ceteris paribus assumptiond) Blinkered approachQuestion 1Define the difference between following terms :i) Microeconomics versus Macroeconomicsii) Normative statements versus positive statementsiii) Change in Supply versus change in quantity suppliediv) Law of Demand versus law of supplyv) Determinants of Demand versus determinants of Supplyvi) Opportunity cost versus Marginal costvii) Price Elasticity of Demand versus Cross-Price Elasticity of Demand.viii) Perfect competition versus competitive marketsix) Invisible hand theory versus price controlsx) ‘Free lunch’ versus ‘there’s no such thing as free lunch’xi) ‘How people make decisions’ versus ‘How people interact’ Note: kindly answer the all above terms with example if you want upvote for your answer thanksDefine the term scarcity in context of economics. Pls explain in detail.
- If an economy can produce various combinationsof food and shelter along a productionpossibilities curve (PPC), then if we increase theproduction of shelter along the PPC, which ofthe following is true?a. We also increase the production of food.b. We must decrease the production of food.This forgone food production representsthe opportunity cost of the increase inshelter.c. We cannot change the production of food.d. The concept of opportunity cost does notapply along PPC.Do economists have any particular expertise atmaking normative arguments? In other words, they haveexpertise at making positive statements (i.e., what willhappen) about some economic policy, for example, butdo they have special expertise to judge whether or notthe policy should be undertaken?You just got a job in Washington, D.C. You moveinto an apartment with some acquaintances. All yourroommates, however, are slackers and do not clean upafter themselves. You, on the other hand, can clean fasterthan each of them. You determine that you are 70%faster at dishes and 10% faster with vacuuming. All ofthese tasks have to be done daily. Which jobs shouldyou assign to your roommates to get the most free timeoverall? Assume you have the same number of hours todevote to cleaning. Now, since you are faster, you seemto get done quicker than your roommate. What sortsof problems may this create? Can you imagine a traderelated analogy to this problem?
- Economics is the social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with ________, the incentives that influence those choices, and the arrangements that coordinate them. plethora realization scarcity profusionOn a microeconomic demand curve, a decrease in price causes an increase in quantity demanded because the product in question is now relatively less expensive thansubstituteproducts.Explainwhyaggregatedemand does not increase for the same reason in response to a decrease in the aggregate price level. In other words, whatcausestotalspendingtoincreaseifitisnotbecause goods are now cheaper?Combinations of goods outside the productionpossibilities curve (PPC) have which of the followingcharacteristics?a. They are attainable today only if weemploy all unemployed or underemployedresources.b. They are not attainable given our existingstock of resources and technology.c. They imply that some resources, such aslabor, are unemployed or underemployed.d. None of the answers is correct.
