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zysi [14]
3 years ago
10

The ____ model of participation sees risks in greater participation and, thus, favors a larger role for elites.

Business
1 answer:
ser-zykov [4K]3 years ago
8 0
The Jeffersonian <span>model</span>
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We typically hear of the gains from trade coming through specialization wherein each nation produces more of and exports that go
Brut [27]

Answer:

Generally theoretical models work only in theory. E.g. perfect competition models exist in theory but no market is really a perfect competition market.

The Ricardian model or the H-O model, or other trade models make the mistake of assuming that resources can be allocated at will and almost immediately, e.g. a fisherman can immediately become an engineer and start developing apps. Or a farmer that produces corn or rye (very popular examples) can suddenly start working at a factory producing bluejeans.

In real life, it doesn't happen. Also, trade models never consider natural trade barriers and extra costs related to trade. E.g. it is not the same to sell $10,000 worth of corn (you need a very large truck) than selling $10,000 worth of jeans (all you need is a small delivery van). In real life, trade is not simple, it is actually extremely complicated.

E.g. everyone knows that manufacturing goods in America is not efficient, at best companies can be less inefficient, but no manufacturing company in America is really efficient if we compare them to foreign companies. Even people who work in manufacturing industries know this, but they want to continue working in them. They want the companies to keep producing in America and they want to keep their jobs. Not everyone in America has a college degree in computer programming, finances, is able to design robots, or is a doctor, etc.

In real life, efficient industries have to exist alongside inefficient industries, and the whole economy suffers from it. But it is unavoidable. In the long run, the economy will eventually shift resources to more efficient industries,  but it takes a long time, and a lot of people and companies will be against it. E.g. every year there are less shoe manufacturers in America, and eventually sometime in the future there will be none.

7 0
3 years ago
____, or providing information supporting their policy positions to legislators, is a visible role played by interest groups. in
Eva8 [605]
Lobbying or providing information supporting their policy positions to legislators, is a visible role played by interest groups. 
Lobbying are efforts that are directed primarily at the national level; committees of Congress that consider legislation, and executive departments. Those involved depend on their personal relationship with members of Congress and the executive branch, which are based on keeping in regular contract. 
8 0
3 years ago
Assume that a country with an open economy has a fixed exchange-rate system and that its currency is currently overvalued in the
olasank [31]

Answer: b. The quantity of the country's currency supplied exceeds the quantity demanded.

Explanation:

A country operating a fixed-exchange rate system would be actively trading its currency to ensure that it remains at a certain rate. If the currency is overvalued, it means that the currency is actually weak and is being propped up by the company's actions in the forex market.

A reason for the weakness would be that the supply is higher than the demand of the currency which means that, as per the rules of supply and demand, the currency is trading at a lower price, i,e., it is weak.

7 0
3 years ago
Suppose gold​ (G) and silver​ (S) are substitutes for each other because both serve as hedges against inflation. Suppose also th
maksim [4K]

Answer:

a) Gold = $1,380; Silver = $1,020

b) Gold = $1,300; Silver = $980

Explanation:

a) At first, with Qg = 60 and Qs = 270, the equilibrium prices for gold and silver are found by solving the following linear system:

P_g = 930-60 +0.50 P_s\\P_s = 600 - 270 + 0.50P_g\\\\-P_s=1740 -2P_g\\P_s = 330+ 0.50P_g\\P_g = 1,380\\P_s = 1,020

Equilibrium price of gold is $1,380 and the price of silver is $1,020.

b) If the supply of gold increases to 120, since the goods are substitutes, there will be an increase in overall supply and the equilibrium price of gold and silver will decrease as follows:

P_g = 930-120 +0.50 P_s\\P_s = 600 - 270 + 0.50P_g\\\\-P_s=1620 -2P_g\\P_s = 330+ 0.50P_g\\P_g = 1,300\\P_s = 980

Equilibrium price of gold is $1,300 and the price of silver is $980.

8 0
3 years ago
Suppose that the equation for the SML is Y = 0.05 + 0.07X, where Y is the average expected rate of return, 0.05 is the vertical
timurjin [86]

Answer:

Risk free interest rate is 5%

Y is 15.5% at a Beta of 1.5

X is 0.29 when Y is 7%

Explanation:

Risk free interest is 0.05 which 5% as given in the equation

The average expected return is given by Y

Y=0.05+0.07X

Since Beta is the same as X, when equals 1.5,Y is calculated thus

Y=0.05+0.07(1.5)

Y=0.05+0.105

Y=0.155

Y=15.5%

The value of Beta at an average return of 7% is computed thus:

7%=0.05+0.07X

where X is the unknown

0.07=0.05+0.07X

0.07-0.05=0.07X

0.02=0.07X

X=0.02/0.07

X=0.29

The scenario  illustrates that the Beta, which is the risk of investment and the Y , the expected average return are positively correlated.

6 0
3 years ago
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