Answer:
d. the supply of financial capital comes from savings, and the demand goes to making loans.
Explanation:
Capital markets refer to the areas where deposits and investment are transferred between the capital providers and others in need of capital. Capital markets consist of the main market, where new shares are released and exchanged, and the secondary market, where already issued securities are exchanged by investors.
Answer:
The answer is B. standardized products
Explanation:
Monopolistic Competition has the following characteristics :
1. There large numbers of buyers and sellers
2. The products offered by sellers are close substitutes for the products offered by another seller.
3. The costs associated with entry and exit are low.
4. Sellers differentiate their products through advertising, branding etc.
Know that the most distinguishable factor in this market is product differentiation or standardized products.
The extent to which the seller is successful in product differentiation determines pricing power in the market.
The demand curve in this market is downward sloping i.e increase in price will lead to decrease in quantity demanded. This market is similar to perfectly competitive market.
The economic profit will fall to zero in the long run because the entry costs are not high.
Answer:
C. The government guarantees that potato farmers will receive at least $50 a ton.
Explanation:
Price floor is implemented by the government or a group where price control is imposed or limit is placed on how low a price a product can be sold.
For price floor to be effective it must be higher than the equillibrum price.
Equillibrum price is the price at which quantity consumers are willing to pay for is equal to quantity suppliers re willing to sell.
Price floors are usually used to keep commodity prices from going too low.
So if the government guarantees farmers will receive at least $50 per ton of potato, they are setting a price floor of $50.
Answer:
(g) Between 0 and -S7.5k because residents can substitute to other products
Explanation:
Data given in the question
Increase in price of typical soda = 10 cents
Total consumed = 150,000 sodas [er day
Dropped quantity = 75,000 sodas
So by considering the above information, the per day compensating variation of the tax varies from 0 and - 7,500
Since the sugar sweetened sodas is treated as a normal goods. Moreover, people can substitute the other goods also if there is an increase in a price of the good
The -7,500 is come from = (-75,000 × 0.10)
The options are as follows
(a) Greater than -$15k because soda is a luxury good with income (b) -$15k because that is the old consumption level times the value of the tax (c) Between -S7.5k and -$15k because soda is a luxury good elasticity > 1 with income elasticity >1 (d) Between -$7.5k arti -$15k because residents can substitute to other products (e) -$7.5k because that is the new consumption level times the value of the tax ()-$7.5k because that is the change in consumption times the value of the tax (g) Between 0 and -S7.5k because residents can substitute to other products (h) Between 0 and -$7.5k because because beverages are typically necessity goods with 6) Nothing because there was no effect on income G) It is impossible to say without knowing consumers' marginal rate of substitution income elasticity less than 1
Answer:
Option (A) is correct.
Explanation:
Following will be the definitions :
Efficiency = (Actual output ÷ Effective capacity) × 100
Utilization = (Actual output ÷ Design capacity) × 100
Therefore,
Efficiency of the system:
= (950 ÷ 1050) × 100
= 90.47% ( 90.5% rounded to one decimal point)
Utilization
:
= (950 ÷ 1,200) × 100
= 79.16% ( 79.2% rounded to one decimal point)
