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kow [346]
4 years ago
10

Markets always allocate resources in ways that meet ideal economic efficiency.

Business
1 answer:
Virty [35]4 years ago
5 0

Answer:

False. Markets can sometimes fail to reach efficiencies when there are externalities, public goods, monopoly, or serious information asymmetries

Explanation:

Invisible hand (effective allocation of resources in a laissez faire economy) sometimes works because when market function effectively and send correct price as signal of values (to society) to producers.

However, when goods can't be traded on markets (public goods) or its values are not correctly reflected on markets (externalities, information asymmetries) or competition is not ensured (monopoly), markets cannot ensure effective allocation of resources.

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The Reading Co. has adopted a policy of increasing the annual dividend on its common stock at a constant rate of 3 percent annua
kicyunya [14]

Answer:

$1.07

Explanation:

In this question ,we use the formula which is shown below:

A = P × (1 + r ÷ 100)^n

where,

P = Present value $0.90

A = Future value

rate =3%

number of years = 6

Now put these values to the above formula

So, the value would be equal to

= $0.90 × (1 + 3%)^6

= $0.90 × 1.03^6

= $0.90 + 1.194052

= $1.07

We considered all the items so that the correct dividend can come

7 0
3 years ago
Which of the following statements is true?
OlgaM077 [116]

Answer:

These statements are true:

A) The Federal Reserve does not set the Federal funds rate, but it influences it through the use of open market operations:

For example, at the very moment the Fed funds rate is 1.75%. If the Fed wanted to raise it to 2%, it would have to do so through the use of open market operations (in this case, because it wants to raise the rate, it would have to sell securities in order to reduce the money supply).

C) The Federal Reserve sets the target for the Federal funds rate, and then uses the reserve ratio to push banks toward that target.

Reserve requirements are perhaps the most powerful, and least often used, monetary policy tool that the Fed has at its disposal. It is very powerful because it directly increases or decreases the money supply.

For example, if the Fed wants to increase the fed funds rate, it can raise the reserve ratio so that banks keep more money in reserves, have less money to loan, and in consequence, create less money, causing the money supply to shrink and the fed funds rate to rise accordingly.

D) The Federal Reserve sets the Federal funds rate.

Correct. More specifically, the Federal Open Market Committee, which meets eight times a year to set the target for the fed funds rate.

3 0
3 years ago
Which one of the following is not one of the four most common ways people can save money in banks?
marysya [2.9K]

Answer:

Fractional Reserves

Explanation:

Banks are required to hold money to lend out. If you deposit $100 into your account that is $100 for the bank to lend that money out to ones who need it.

6 0
3 years ago
When aggregate demand is high enough to drive unemployment below the natural rate:_________
ad-work [718]

Answer:

e. there is downward pressure on the price level, and the government may want to conduct expansionary fiscal policy.

Explanation:

At the time of boom in the economy, the unemployment rate is beneath than the rate i.e. natural also it gives rise to the growth of the economy, along with it the expenditures, consumer spending also increased that ultimately increased the disposable income.

This results in the upward movement in terms of pressure on the aggregate demand that leads to a rise in the level of price and the real GDP also rises which reduced the unemployment

But when the aggregate demand is less so there is a downward pressure on the price as the level of price declines so that the aggregate demand increased and it is requirement made by the government for an  expansionary fiscal policy that give increased in government spending or taxes decreased in order to raise the aggregate demand

6 0
3 years ago
Juan is a very smart individual in a company. While he works hard, he sometimes is perceived by his co-workers as condescending.
andrew-mc [135]

Answer:

It contains the "Blind Self"

Explanation:

The Johari Window is a cognitive psychology tool created by psychologists Joseph Luft and Harry Ingham to illustrate the processes of human interaction. This model of analysis illustrates the process of communication and analyzes the dynamics of personal relationships. It attempts to explain the flow of information from two points of view, exposure and feedback, which illustrates the existence of two sources: the "others" and the "I".

The Blind Self when we talk about the Johari window model we talk about a main key or concept; BLIND (area/self/spot) which refers to those areas about which the person himself/herself is unaware while others are aware of. it is one of the key concepts

8 0
3 years ago
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