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

Q: Why are financial markets essential for a healthy economy and economic growth?

A: Financial market: For the most part, allude to any commercial center where securities exchanging…

Q: What is market model?

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

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

A: Economic incentives are given to motivate a person to take a particular course of action . Economic…

Q: What are economic resources?

A: Economic resources: Assets or services of an organization carrying some economic value which can be…

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: Critically discuss the efficient market hypothesis

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

Q: What does it mean for a market to be “efficient”?

A: The market is efficient in the scenario when the stock price in the present market is not…

Q: Why are efficient capital markets necessary for economic growth?

A: Capital Markets are the markets that accelerate the transactions of securities with specified term…

Q: What is money market?

A: Introduction: Money market is a market for short period funds or financial assets. It deals with…

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: What is the decision rule for payback?

A: Payback period is the period of time taken by the project to recover the investment in such project…

Q: What is the conventional-payback method?

A: Conventional Payback Method

Q: Why can we not invest net income? Explain with an example?

A: The net income is the net profit of the company earned during the period. The net income includes…

Q: What is market efficiency?

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

Q: Why monetary policy is important?

A: Monetary policy is the policy which controls the supply of money available in the country to promote…

Q: What are economic agents?

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

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 "constructive receipt doctrine? Discuss What is "economic benefit doctrine? Discuss

A: Constructive receipt doctrine: According to constructive receipt doctrine policy, the taxpayer…

Q: es it govern social and

A: There is no concept exist like talent because every individual have the unique quality and they have…

Q: What do you think about the capitalistic model that runs the world in which you live?

A:

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: Where does the economic equivalence exist? What are its side effects?

A: The existence of economic equivalence is in between the cash flows having a similar economic effect…

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 is market value?

A: Market value is the competitive price at which an asset will sell in the market. It is the highest…

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 is economic extortion?

A:

Q: When you reward the talents of society values, does it govern social and economic inequalities

A: there is no concept exist like talent because every individual have the unique quality and they have…

Q: What is Economic Value Added ?

A: Economic value added is used for measuring the financial performance of a company based on the…

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: What is a firm’s fundamental value (which is also called it intrinsic value)? What might cause a…

A: Intrinsic value is a degree of what is the worth of the resource or asset. This gauge is…

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 is net present value? Can it ever be negative? Explain.

A: Net present value: Net present value is a technique used in capital budgeting to see the project is…