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Sedbober [7]
3 years ago
8

A market surplus occurs when: People cannot buy the amount of goods and services that they are willing and able to buy.

Business
1 answer:
Inga [223]3 years ago
3 0

Answer: b. The quantity supplied exceeds the quantity demanded at a given price.

Explanation:

A market surplus is a situation where suppliers have supplied to the market, more goods than the demand can take at a given price.

This will lead to the suppliers having unsold goods and they will respond by reducing their prices so that they may be able to sell because the law of demand shows that when prices reduce for normal goods, quantity demanded increases.

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Suppose that the spot price of the euro is currently $1.30. The 1-year futures price is $1.35. Is the interest rate higher in th
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Answer:

The interest rate is higher in the US.

Explanation:

The forward price is calculated using the following formula,

F= S ( 1+Rd / 1+Rf)^t

where,

  • F = Forward rate
  • S = Spot rate
  • Rd = Nominal interest rate in domestic market
  • Rf = Nominal interest rate in foreign market
  • t = time in years

We consider that the domestic market is the US and the domestic currency is the USD. Thus, it is a direct quote where 1 EUR = 1.3 USD

The forward price ER is more than the Sport ER only when the interest rate in domestic market is more than the interest rate in foreign market and as a result, the value of domestic currency against a foreign currency in the forward market depreciates.

We can see this by the following example,

Say Spot rate is $1.3 per 1 EUR and the interest rate in US is 10% while that in Euro zone is 5%. When we calculate the forward ER we will see that 1 EUR will buy us more USD in forward (more than 1.3 USD)

F= 1.3 * (1.1 / 1.05)^1   => $1.362 PER 1EUR

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3 years ago
Which global environmental problem may be worsened by the use of gas hydrates as an energy source?
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<span>The energy source in gas hydrates is methane, which is trapped inside of ice. Extraction of the methane may result in leakage of small amounts of methane. This is a potential global environmental problem because methane is a very potent greenhouse gas.</span>
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A disorder resulting from exposure to a major stressor, with symptoms of anxiety, nightmares, poor sleep, reliving the event, an
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PTSD 
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The latest version of the surgeon general reports recommends ________ for the promotion of health.
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The answer is Regular and Moderate to High Physical Activity


While generally accepted as good for health, medical professionals have conducted extensive research and recommended that the best way to promote health is to regularly exercising, especially at a moderate and high level physical activity.

This means, simple walking is not going to be enough.
We need to exert our bodies to some extent regular to optimal fitness.

Regular exercise is said to reduce to risk of diabetes, heart problems, various types of cancers etc.
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3 years ago
What are aspects of a free-enterprise system? Check all that apply. Private ownership of property is severely restricted. The go
Elena L [17]

Answer: In a free-enterprise system,

There are few limits on the use of private property.

Consumers make all of their economic choices.

Producers make all of their economic choices

<h3>a. There are few limits on the use of private property: </h3>

In a free enterprise system the holders of private property are free to buy and sell property. The government doesn't impose restrictions on such transactions.

<h3>b. Consumers make all of their economic choices. Producers make all of their economic choices.</h3>

In a free enterprise system, the producers set the price they want to charge for their product. Similarly, the consumers decide what they want to pay for the product. Hence the prices of commodities and the quantities supplied are decided by the market forces of demand and supply.

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