Answer: Positive, Normative
Explanation: Positive economics is based on facts and objects that can be verified. While, normative economics is based on value based judgement that are difficult to verify.
Making a prediction today about the world's population in twenty years <em>based on current growth trends</em> is an example of <em>positive economics</em>.
<em>Advising</em> the residents of a town to choose a toll road over a freeway extension due to a limited budget and high trucking usage is an example of <em>normative economics</em>.
The savings account that would earn the least amount of money is the account that earns a simple interest monthly.
<h3>What does simple interest and compound interest mean?</h3>
Simple interest rate is the interest that is paid only on the principal portion of a loan. This means that the debtor does not pays interest on the interest rate already accrued. This differs from compound interest where the debt holder pays interest on the principal and the interest rate already accrued.
This means that an account that earns a compound interest would have a higher yield when compared with an account that earns a simple interest.
To learn more about compound interest, please check: brainly.com/question/26367706
Sometimes when speaking, your thoughts get very jumbled, if you're at all like me. Organizing your thoughts can well, organize your thoughts! :)
Answer: a. benefits Boxlandian consumers by $672 and harms Boxlandian producers by $598.50.
Explanation:
Equilibrium price will be at level where quantity demanded equals quantity supplied.
200 − 2P = -60 + 3P
200+60 = 5P
5P = 260
P = $52
Equilibrium Quantity Demanded = 200 − 2P = 200 - 2 * 52 = 96 units
In a no-trade situation the demand in Boxland is 96 units at a price of $52. If they were to buy at the world price of $45, they would benefit;
= (96 * 52) - (96 * 45)
= 4,992 - 4,320
= $672
Producers however would produce the following at a price of $45;
Q S = -60 + 3P
= -60 + 3(45)
= 75 units
They would be supplying less units and be hurt.
Answer: The answers to the questions are provided below.
Explanation:
1. The Required Rate of Return(RRR) is the absolute minimum return on an investment that an individual or firm would accept for the investment to be considered worthwhile. The required rate of return helps in deciding whether an investment is worth the cost or not.
An expected rate of return helps in knowing out how much one can expect to make from an investment. An expected rate of return is the return on investment that an individual or firm expects to make when investing in a stock.
The RRR is the least possible rate which would entice someone to invest while the expected rate of return is what the person plan to make from that investment and its calculation is based on probability.
When there is difference between the required rate of return and expected rate of return for an asset at a specific period of time, it means that the economic conditions aren't normal as there is either inflation or deflation in the market.
2. The holding period return is the total return gotten from holding an asset over a particular period of time which is known as the “holding” period while the expected return is the return based on probability-weighted average of likely returns from an investment.
3. Diversification is a technique that is applied to reduce risk through the allocation of investments among several financial instrument and industries. Diversification aims to maximize the returns through investment in different sectors because each sector will likely react differently when there's a risk. Investing in more than one asset through diversification is essential because each asset will react differently when a risk occurs.
