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3 years ago

Economic models are:

Business

1 answer:

melamori03 [73]3 years ago

3 0

Answer:

The correct answer is letter "B": potentially useful in forming economic policy.

Explanation:

Economic models are abstractions that try to simplify phenomena of the real world. Economic models are the assumption that economists make to understand the diverse economic events that occur. Those models could be theoretical or mathematical in some cases.

Economic models can help governments establish economic policies based on facts of the environment and the variables affecting that community.

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n rural areas electrical power is often sold by ____________ that take advantage of the government's policy to sell them electri

Dmitriy789 [7]

Answer:

Cooperatives

Explanation:

Cooperatives are people-centered enterprises owned, controlled, and run by and for their members to realize their common economic, social, and cultural needs and aspirations.

4 0

2 years ago

Which of the following statements is FALSE?

soldi70 [24.7K]

Answer: The following statements is false: Mutual aid and assistance arrangements and Memorandums of Understanding (MOUs) cannot be used for supplementing incident staff.

The above statement is wrong since mutual aid, assistance arrangements and memorandums of understanding can be used for supplementing incident staff.

Therefore, the correct option is (c).

8 0

3 years ago

It is July 16. A company has a portfolio of stocks worth $100 million. The beta of the portfolio is 1.2. The company would like

Anuta_ua [19.1K]

Answer:

A. The company should take Short position and

140 contract

B. The company should take Long position and 60 contract

Explanation:

Calculation for what position that the company should take

Using this formula

Company position=(Beta of the portfolio*Change in beta of the portfolio) *Portfolio of stocks /Index futures price* Each Contract index times

Let plug in the formula

Company position =(1.2-0.5)*$100 million/2,000*250

Company position=0.7*$100 million/500,000

Company position=$70,000,000/500,000

Company position=140 contract

Therefore the position that the company should take will be SHORT position with 140 contract

B. Calculation for the increase in beta of the portfolio from 1.2 to 1.5 and what position tthr company should take in the futures contract and how many contracts

Using this formula

Company position=Increase in beta of the portfolio *Portfolio of stocks /Index futures price* Each Contract index times

Let plug in the formula

Company position =(1.5-1.2)*$100 million/2,000*250

Company position=0.3*$100 million/500,000

Company position=$30,000,000/500,000

Company position=60 contract

Therefore the company should take Long position and 60 contract

4 0

3 years ago

Choose the correct answer in the following statements about financial and real assets.

lora16 [44]

Answer: Please refer to Explanation

Explanation:

A financial asset is a non-physical asset that that gets it's value from a contract that was signed by the parties involved. Financial assets include Bonds, stocks and even cash amongst others.

Real Assets on the other hand are physical assets that can be seen and hence have an inherent value. Examples include buildings and cars.

a. Toyota creates a real asset- the factory. The loan is a financial asset that is created in the transaction.

The factory becomes a real Asset that is tangible and has an inherent value. The loan was created by an agreement between Toyota and the bank and so is a Financial Asset.

b. When the loan is repaid, the financial asset is destroyed but the real asset continues to exist.

When the loan is repaid, Toyota no longer owns that financial asset because it has gone back to the bank. However, the Real Asset which is the factory that they were able to build will remain with Toyota.

c. The cash is a financial asset that is traded in exchange for a real asset, inventory.

As already mentioned, cash is a financial asset. Inventory is a tangible substance with an inherent value not determined by a contract and so is a Physical Asset. Trading cash for Inventory is therefore trading a financial asset for a physical one.

3 0

3 years ago

Question 5 of 10

kogti [31]

Answer:

the first option is the correct one

8 0

2 years ago