Why is there a need to regulate Investment banks?

Q: Consider an economy suffering from recession (with its real GDP below the potential level). Using a…

A: Here we are given that the economy is in recession which means its is producing less than its…

Q: QUESTION 11 If the price elasticity of demand for any product is equal to 1, this means that…

A: If the price elasticity of demand for any product is equal to 1 .

Q: .Engr. Dy deposited an amount of Php 8635.9 in a bank’s savings account with interest 7.5%…

A: Deposit Amount = 8635.9  Interest rate = 7.5% Monthly interest rate = 7.5/12 = 0.625% Duration = 19…

Q: What are the main differences of thought between John Maynard Keynes and Milton Friedman

A: John Maynard Keynes He was indeed an English economist for whom the theories profoundly altered…

Q: Justin’s Jeans sells in a perfectly competitive market with a downward-sloping demand curve and an…

A: Here we have perfectly competitive market with the market price is $33 / unit and this firm has…

Q: Compare both the classical and modern theory of the economic activities of the state

A: An economic theory is a body of concepts and precepts that describes how various economies operate.…

Q: Stock market crashes are often followed by economic downturns. Using a 450 -line diagram, explain…

A: The recession refers to the economic condition where the demand is not sufficient in the market to…

Q: Tina Mier must pay a $6,250 furniture bill. A finance company will loan Tina $6,250 for 8 months at…

A: The effective interest rate, effective yearly interest rate, annual equivalent rate, or simply…

Q: 30. What consumer's budget constraint reflect? O the Trade-off between two goods O the relative…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: 11. Let u(x₁, x₂) = x₁02x₂0.8. Suppose the consumer initially has income level m 20 and the prices…

A: The price effect is divided into the substitute effect and income effect.  For normal good, the…

Q: What is a relevant example of how a change in the market (including information, preferences,…

A: DISCLAIMER  “Since you have asked multiple questions, we will solve the first question for you. If…

Q: S Suppose that the price of President's Choice macaroni and cheese decreased from $10 to $9 per…

A: Cross price elasticity of demand measures the responsiveness of quantity demanded of good 1 with…

Q: A monopolist has set her level of output to maximize profit. The firm's marginal revenue is $20, and…

A: The monopoly market is characterized by the single firm in the market and it has monopoly power or…

Q: 3. Discuss whether the price elasticity of supply of salmon is likely to be high or low.

A: In economics, the term "elasticity" basically refers to the way in which the total amount of an item…

Q: When the income elasticity of demand is negative then products are normal. True O False

A: Income elasticity is the ratio of the percentage change in quantity demanded with the percentage…

Q: uppose in 1981 the retail price of a VCR at Sears was $1, 389.88. What would be he cost of that VCR…

A: The Consumer Price Index refers to an index that measures the overall change in buyer prices based…

Q: Consider a good with a price floor that is above the equilibrium price. If demand decreases, what…

A: The price at which demand for a good or a service is equal to supply is known as the equilibrium…

Q: Explain the Global Economic Systems

A: Economy The economy is a region where products and services are produced, distributed, traded, and…

Q: Suppose the income elasticity of demand for health care insurence is 0.3. If the level of income…

A:

Q: Ted can wax a car in 15 minutes or wash a car in 45 minutes. Ishana can wax a car in 30 minutes or…

A: According to the opportunity cost theory of comparative advantage, the country/ firm/individual…

Q: On May 1, Emerson Fast bought 10 Manitoba Polar bonds with a coupon rate of 7.875%. The purchase…

A: The amount of interest that has accrued since the bond transaction is known as accrued interest.…

Q: Let u (x1, x2) = 0.3In (x1) + 0.7In (x2). These represent preferences that are smooth and convex.…

A:

Q: Ryan, a consumer electronics salesperson, eams a base salary of $900 per month and a commission of…

A: The sale is the total the sold out item or product. The sale maximization is the main objective of…

Q: 10) The llowing graph shows the rect or a per O $150 thousand O $3,000 thousand O $6,000 thousand…

A: A deadweight loss is the price of market inefficiency, which occurs when supply and demand are out…

Q: What other change should be made to the original pricing strategy if the MC of each good is MC=$0.12…

A: Marginal cost The difference in overall production costs caused by creating or producing one more…

Q: If the demand curve for kids' magazines is ln(Q) = 10 – 2ln(p), then the price elasticity of demand…

A: Elasticity is the ratio of percentage change in quantity demanded and percentage change in price.

Q: QUESTION 25 When quantity supplied is higher than quantity demanded, this fact is known as Shortage.…

A: At the equilibrium point, the quantity demanded is equal to the quantity supplied, and the price at…

Q: QUESTION 17 What determines the price of a product in a free market? The government. Me. The…

A: What determines the price of a product in a free market.

Q: With the same production function, move the points to graph the marginal product of labor. Marginal…

A: Given  Quantity of workers (L) Quantity of bricks (thousands of bricks)  0 0 1 10 2 18 3…

Q: At point A, how many units of All Other Goods is the person buying? All Other Goods A C Budget Line…

A: The budget line is a graphical representation of all possible combinations of two commodities that…

Q: Suppose that the state of "Intoxication" decides to impose an excise tax on liquor. Moreover,…

A: Budget constraint shows the total budget spend on the goods when the price of the goods is given.…

Q: Suppose that the feasible region of a cost minimization linear programming problem has three corners…

A: The objective function is given as: Z = 2X + Y  Corner points given are (5,8) (10,5) (4,10)  So, the…

Q: In the luxury trips market, if income of people increases 50%, quantity demanded increases from 20…

A: Elasticity is a phrase used to describe how demand and supply can alter as a result of shifting…

Q: 2. A consumer is observed making two choices. First, he faces prices p = (1,3) with wealth w = 8 but…

A: According to the Revealed Preference Theory, a consumer's preferences may be deduced from the kinds…

Q: Sources of information available to a buyer when seeking information about potential sources of…

A: A basic economic concept called supply refers to the total amount of a particular good or service…

Q: QUESTION 12 The causes of market failure are: Externalities and government intervention. Government…

A: Market failure is the situation when market is fail to achieve the optimal equilibrium.

Q: QUESTION 22 Price if no tax- P If we introduce a tax in this example, who will pay a lower share of…

A: Tax burden fall more on consumers if the demand curve in inelastic.  And The tax burden falls more…

Q: Instead of buying a ticket to a concert, you wait in line all night to get free tickets being given…

A: Opportunity cost is the benefit lost while making a different decision. You must compare the…

Q: Assume the market for beef is highly competitive. The market demand for beef is QD=40-2P where P is…

A: At Equilibrium Price, quantity demanded of a good or service is equal to quantity supplied. At…

Q: Please refer to the following information to answer the question (in bold) below: You enjoy…

A:

Q: What do you understand by social security? What do you understand by the “pension crisis” and how…

A: The government offers financial aid that is in the form of social security to the general populace.…

Q: Carefully explain whats happening to the market for a regular cup of coffee. Indicate the impact if…

A: Market demand and market supply are the two major drivers that decide the prices that will prevail…

Q: You consume music (M) and concert tickets (C). Your utility function is U(M, C) = M1/4C3/4. The…

A: Given  Utility function: U(M,C)=M1/4C3/4                                     .....(1) Marginal…

Q: Using the attached table, the equilibrium price before the tax is imposed is . The equilibrium price…

A: Here, the given table provides information about quantity demanded and quantity supplied with or…

Q: To earn extra money in the summer, you grow tomatoes and sell them at a local farmers' market for…

A: The marginal cost is the adjustment of the total cost that emerges when the quantity produced is…

Q: QUESTION 1 Supply curve shifters are: O Input prices, expectations, number of buyers, and…

A: Supply shifters are the factors that shift the supply curve either to the left or to the right.

Q: 8. Suppose a multiproduct monopolist faces the following demand functions: P₁ = 55-Y₁-Y₂ P₂ =…

A:

Q: Assume that Home and Foreign produce two goods, TVs and cars, and use the information below to…

A: MPL refers to a firm's rise in total production when one additional unit of labor is added and all…

Q: Transform the cash flows on the left-hand side of the accompanying diagram to their equivalent…

A: A cash flow is a real or virtual movement of money: a cash flow in its narrow sense is a payment,…

Q: (b) Given that nothing else is borrowed in the near future, the length of time it will take a…

A: Yield to maturity (YTM) is the total rate of return that a bond will have achieved after all…

Factor Models

Many attributes might be related to an asset's risk, including market capitalization (size), dividend yield, growth, price-earnings ratio, etc. The use of these traditional descriptors, however, presents a few problems: