Answer:Option (A)
Explanation:
From the given case we can state that the mentioned contract is a requirement contract. Requirements contract is referred to as or known as a contract under which one individual or party tends to agrees to supply a good, commodity or service as required by other individual or party, and thus in exchange the individual implicitly or expressly promises to obtain the commodity and services .
Demand and supply in the market for Loanable fund determine the long-term real interest rate. In the short run, a change in the Federal funds changes the equilibrium real interest rate.
<h3>What is federal funds?</h3>
Federal funds, often directed to as fed funds, exist as surplus reserves that commercial banks and other financial institutions deposit at regional Federal Reserve banks; these funds can be lent, then, to other market parties with inadequate cash on hand to satisfy their lending and reserve needs.
Loanable funds consist of household savings and/or bank loans. Because investment in new capital goods exists frequently made with loanable funds, the demand and supply of capital are often examined in terms of the demand and supply of loanable funds. In economics, the loanable fund's doctrine exists as a theory of the market interest rate. According to this procedure, the interest rate is specified by the demand for and supply of loanable funds. The term loanable funds contain all conditions of the credit, such as loans, bonds, or savings deposits.
Hence, Demand and supply in the market for the Loanable fund define the long-term real interest rate. In the short run, a change in the Federal funds alters the equilibrium real interest rate.
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Answer: B
Explanation: consumers buy product to maximize SATISFACTION and not for profit motive. They are expected to buy at the point where price of commodity = marginal utility of the commodity I.e PX = MUx
Answer: E) above the market wage, causing labor demand to be less than labor supply.
Explanation:
Minimum wage simply refers to the lowest wage that employers can pay their workers. Minimum wage is a form of price floor which means that it's typically higher than the equilibrium or market wage.
In this case, since it's higher than the market wage, there'll be an increase in the supply of labor as those that are unemployed will be willing to work duw to the increase in the wage rate.
On the other hand, there'll be a reduction in the demand for labor as employers typically will want to reduce cost and won't be interested in employing more workers.
Therefore, the correct option is E
Answer:
Price changes are independent but not biased in efficient market hypothesis.
Explanation:
In simple words, the efficient-market hypothesis asserts that asset prices represent all relevant knowledge. Because market rates must only respond to fresh knowledge it is difficult to continuously "beat the market" on something like a risk-adjusted approach.
Thus the given statement is partially true.
