Business because you need to go to college and get a business degree for investments and banking service
There are various forms of market failure, though it is commonly defined in economics as a situation where the distribution of goods and service are conducted in an inefficient manner.
In the case illustrated in the question, the form of market failure that is taking place occurs in the nature of the exchange, which is due to bounded rationality. It is defined as condition commonly occurring in individuals where decision-making is based on making a satisfactory solution instead of an optimal one – this leads to irrational behaviors. A good example is the tipping behavior provided in the question.
Thus, the answer to the question is (D) Yes this could be considered a form of market failure. If consumers and markets were rational tips would be based on the quality of service.
Answer: D. Correlation analysis
Explanation:
Since she estimated the future sales of these textbooks by measuring the interconnection between sales and announcement of courses that recommend them, she's using correlation analysis of sales forecast.
Correlation analysis is used to show the relationship that exist between two quantitative variables. We should note that in this case, the dependent variable is sales while the independent variables will be the factors that bring about the fluctuation in sales.
A high correlation simply implies that there's a strong relationship between the variables while a weak correlation implies that the variables are not related.
Answer:
effective interest rate
Explanation:
The effective interest rate is the rate that an investor actually earns from investing in a bond. The effective interest rate is usually different than the interest rate stated on a bond (e.g. coupon rate).
It is also called market interest rate because bonds are sold in secondary markets at a different price than face value (usually bonds are sold at a premium or at a discount). That price at which the bonds are sold determine if the effective interest rate will be higher or lower than the stated interest rate of the bond.
