Answer:
Following are the solution to the given questions:
Explanation:
Please find the complete question in the attached file.
In this question, the Stinsons would prefer the most profitable alternative
Formula:
In point A:
In point B:
In point C:
Answer: The correct answer is choice c.
Explanation: Asymmetric information is the term that is used to refer to a situation in which on part to an economic transaction has less information than the other party. This term is also known as information failure.
Please find attached full question
Answer and Explanation:
Please find attached
Answer:
Event II should probably get the most attention and Event III should probably get the least.
Explanation:
From the given information, we have an event, the probability and the cost. Event II has a probability of 0.2 and a cost of 53. This means that it should be given the utmost importance because the event has the highest cost among all other events.
On the flip side, Event III should probably get the least attention because the cost involved is the least. Event III has a probability of 0.1 and a cost of 12.
Therefore, Event II should probably get the most attention and Event III should probably get the least.
Answer:
Aggregate Supply = National Income
Explanation:
Aggregate Demand is total value of goods & services buyers are planning to consume. In a closed un-intervened economy : AD = Consumption (C) + Investment (I) ,C is positively related with income (Y) & I assumed to be autonomous .
So the AD curve (plotted against Y) has an upward sloping curve (∵Y, C +ve relationship) having intercept on Y axis (∵ equal to autonomous C, I).
Aggregate Supply AS is the total value of goods & services producers are planning to sell. It is equal to National Income because : this producers' desired/ planned production level yields incomes which is distributed as factors incomes to factors of production. And, Income is either consumed or saved . So AS = C + S (Saving)
Hence , AS (C+S) plotted against Y , is an upward sloping 45° line . Because such line has a special feature of having equal distance from X & Y axis & the things magnitude on both axis is equal , like Y = AS (i.e C +S)