Answer:
C. A situation where no economic agent would benefit by changing his or her behavior
Explanation:
An economic equilibrium is when the agents are optimizing their decisions and opposing market forces are equal. This point allows the economic agents to maximize their utility and any change from this point will cause all agents to move away from potential maximum benefits.
In a natural equilibrium there is usually no government intervention so option A is false. Option B gives only one agent potential benefits and as such there is no equilibrium. Option D is conditional and may or may not happen as when the agents find missing information they would optimize again and move to an equilibrium.
Hope that helps.
Answer:
a. Sue told her employees the department needed 12% more sales this year than last and they would be contacting at least four new customers each week
Answer:
correct option is b. 4.00%
Explanation:
given data
10 Year T-bond yield = 6.90 %
Inflation = 2 %
MRP of 10 years T-bond = 0.90
to find out
Treasury Inflation Protected Securities (TIPS)
solution
we get Treasury Inflation Protected Securities yield is express as
Treasury Inflation Protected Securities yield = T bond yield - Inflation- MRP ................1
so
Treasury Inflation Protected Securities yield = 6.90 - 2 - 0.90
Treasury Inflation Protected Securities yield = 4 %
so correct option is b. 4.00%
Answer: a. Residual income, like ROI, can encourage a short run orientation
Explanation:
Residual incomes presents the same problem as ROI measurement, The problem of myopic behaviour or short run orientation
The manager may cut expenses like advertising expenses, maintenance expenses , training expenses when being evaluated under residual income or ROI to reflect a favourable residual income or return on investments, The problem Managers being short run orientated is not eliminated or minimized by change methods between ROI and Residual income.