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Karolina [17]
3 years ago
12

Explain why, in seeking to avoid financial crisis, the government's role as regulator of the financial system does not imply it

should protect individual institutions from failure.
Business
1 answer:
GREYUIT [131]3 years ago
3 0

Answer: Market Efficiency

Explanation:

It is important that the Government as a regulator should not get involved in acts that would protect individual institutions from failure because that would defeat the whole purpose of a competitive industry.

If a government is known to directly involve itself in the protection of institutions from failure, efficiency in institutions may become low because of the lack of fear of failure as companies believe that should they run into bad times, they will simply be bailed out by the government so there is no need for them to maintain a competitive edge.

This can lead to a situation where we have companies performing sub optimally in an economy which can only act to reduce the Economic growth of a country.

Government institutions usually have such backing and in a lot of countries are prone to failure. Look at the Bamangwato Concessions Limited (BCL) mine in Botswana for instance that kept failing and refusing to improve it's efficiency because they could always run back to the government for a bailout. Their position eventually became so untenable that bankruptcy was the only option.

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Suppose that the cross price elasticity of demand between movie tickets and popcorn is −0.10. What would you expect to happen to
Murljashka [212]

Answer:

fall

3%

Explanation:

3 0
3 years ago
Everything else equal, including firm size, dollar sales, type of product sold, and so forth, the primary difference between pro
Kisachek [45]

Answer:

a. a partnership has more owners than a proprietorship

Explanation:

There is an agreement in a partnership between two or more persons. The persons we called partners who come together to share their assets. In addition, the profits and losses are shared between the partners in their profit-losses sharing ratio.  

And in a proprietorship, there is only one owner who controls overall business activities that are conducting in the business. He or she is personally liable for his or her acts.  

7 0
3 years ago
Discuss what Senator Ed Markley says the safety regulation loophole is responsible for? What did Markley try to do about this? D
alexandr1967 [171]

Safety regulation loophole is responsible for closing the regulatory loophole, having an emergency plan, trying to have safety culture for every pipeline to avoid the disaster.

<u>Explanation:</u>

Senator Ed Markey is a member of commerce, science and the transport committee. He had the jurisdiction over the pipeline and hazardous material safety administration. According to him the safety regulatory loophole was very important and was responsible for avoiding the disasters like what happened in Merrimack valley.

He said that it is very important for every pipeline company to have a safety culture, to have an emergency response plan in case of any disaster or mis happening. There should be pipeline safety act with the toughest rules on it, that every pipeline company would have to follow, to avoid any kind of the disaster

5 0
3 years ago
Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over about
Zepler [3.9K]

Answer:

c. the United States and Argentina

Explanation:

According to my research on Country Economic Growth, I can say that based on the information provided within the question the two countries that experienced this type of growth in the last 120 years has been the United States and the Country of Argentina. This growth is calculated by dividing the per capita growth rate percent (or 15) by the number of years.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0
3 years ago
Asymmetric information: Please choose the correct answer from the following choices, and then select the submit answer button. A
Irina18 [472]

Answer:

prevents markets from reaching a socially desirable outcome

Explanation:

Asymmetric information is when one of the parties in a transaction has more information than the other party.

For example, a seller might purposely sell a faulty product to a buyer. The seller knows the product is faulty but the buyer doesn't. This prevents markets from reaching socially desirable outcome.

Asymmetric information can lead to adverse selection which can prevent markets from reaching socially desirable outcome.

I hope my answer helps you

4 0
3 years ago
Read 2 more answers
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