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ira [324]
4 years ago
12

Adverse selection is the problem that arises when the people or firms who are most eager to make a transaction are the least des

irable to parties on the other side of the transaction. when this happens markets fail due to the problem​ of:
Business
1 answer:
BartSMP [9]4 years ago
5 0
The market fail because of those least desirable parties because in order for the problem to be prevented, the people involved or the firm should have the determination of doing their job such as having to make the transaction, if they are not interested, then there will be a marketing failure.
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Economic fine-tuning is the (usually frequent) use of Group of answer choices fiscal policy that both balances the budget and co
bezimeni [28]

Answer:

monetary and fiscal policies to counteract even small undesirable movements in economic activity.

Explanation:

Economic fine-tuning is the (usually frequent) use of monetary and fiscal policies to counteract or subvert even small undesirable movements in economic activity.

Monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country to control the money supply and interest rates so as to boost or enhance economic growth. The central bank uses monetary policies to manage inflation, economic growth through long-term interest rates and level of unemployment in a country. In order to boost economic growth, monetary policy is used to increase money supply (liquidity) while it is also used to prevent inflation by reducing money supply.

On the other hand, Fiscal policy refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.

8 0
3 years ago
Suppose that total sales in an industry in a particular year are $800 million and sales by the top four sellers are $50 million,
Kamila [148]
<span>We can conclude that the top 4 sellers represent a 15% total volume of sales overall. The 4 sellers are the workhorses for getting this much sales and we can conclude that they will be treated well and compensated for doing such a great job.</span>
4 0
4 years ago
In marketing research, an experiment is designed to test ______. Multiple choice question. cause and effect, often between marke
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The choice of the question I think
5 0
2 years ago
When placing the vehicle in motion, it is strongly recommended that the last task you perform is to release the parking brake. w
disa [49]
To reduce the risk of a rollback-collision on an incline
5 0
3 years ago
Corporate bonds issued by Johnson Corporation currently yield 12%. Municipal bonds of equal risk currently yield 6.5%. At what t
daser333 [38]

Answer:

the tax rate should be of 45.83% to make indifferent for the investor

Explanation:

the municipal bonds pay no income tax according to United States IRS regulation

Therefore their rate will be the equivalent of the after-tax rate of a corporate bonds

to make it indifferent we should look at the rate that makes the after tax yield of the 12% equal to 6.5%

pretax \times (1 + t ) = after-tax

0.12 x (1-t) = 0.065

1 - 0.065/0.12 = t

t = 0.4583 = 45.83%

the tax rate should be of 45.83 to make indifferent for the investor

4 0
3 years ago
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