Please provide an answer to the following with an explanation as to why the option is the correct answer: In a fixed rent tenancy, risk is: a) Borne by the tenant b) Borne by the landlord c) Shared between landlord and tenant d) None of the above
Q: Suppose that the T-account for First California Bank is as follows. The required reserve ratio is…
A: The monetary policy tools adopted by Fed to increase or decrease liquidity include the purchase or…
Q: his economy only produces two goods apples and TV. For the years 1997 and 1998 the quantities are…
A: We have been given that the prices and quantity of Apple and TV produced in an economy.…
Q: Belva is willing to pay $53.36.00 for a pair of shoes for a formal dance. She finds a pair at her…
A: The willingness to pay refers to the maximum amount that a buyer wants to pay for an item and…
Q: A bottle of wine can be produced in France with 2 labor hours, and in the United States with 4 labor…
A: Global trade resembles a worldwide symphony, where countries trade goods and services in their…
Q: What economic policies have impacted the quality of healthcare and access to healthcare disparities?
A: Healthcare, every now and again created as "health care," suggests the planned undertakings,…
Q: (Figure) The figure shows the cost curves for a representative firm. At an output level of five…
A: Cost is the expenditure that is spent on production of goods. It is represented in terms of money…
Q: Which of the following statements are true about price controls used by some local governments? A)…
A: Price Control alludes to the guideline by the government or a legal power of the prices charged for…
Q: If the price elasticity of demand for used cars priced between $3,000 and $5,000 is-14 (using the…
A: Price elasticity of demand measures the percentage change in demand due to a percentage change in…
Q: Your total benefits from spending time with your spouse are shown in the following table. Hours per…
A: The overall benefit received from spending time with the spouse is given as follows. Number of…
Q: If a firm quadruples(4x) in size and output triples (3x), what is the returns to scale? A O B O C…
A: The markets are the place where the buyers, and the sellers of the goods, services, and other…
Q: Demand is said to be price elastic if a 1 percent rise in price increases the quantity demanded by…
A: Price elasticity of demand is a measure of the responsiveness of the quantity demanded of a good or…
Q: 3. Import quotas Kazakhstan is an apple producer, as well as an importer of apples. Suppose the…
A: Deadweight loss implies the loss of economic efficiency that occurs when the equilibrium of a market…
Q: According to the combination of output shown by the isoquant, Y
A: Isoquants, short for "Isocost-quantity combinations," are a fundamental concept in microeconomics…
Q: Marginal Cost and Marginal Benefit Quantity (millions of megawatts) 0.5 1.0 1.5 2.0 2.5 3.0 MB…
A: The market equilibrium quantity is where the private marginal benefit curve intersects the private…
Q: I This is a 1 2 3 4 5 6 7 8 9 10 externality, and the socially optimal (efficient) quantity is…
A: When there is an externality then there is a difference between the private cost and social…
Q: 1. Problems and Applications Q1 Consider the following four situations: A. Actual inflation is 6…
A: In the short run, Phillips describes the relationship between inflation and the unemployment rate.…
Q: If Burundi allows international trade in the market for maize, it will import answer, accounting for…
A: "As per our policy, we can provide solution to the first three subparts. Kindly raise the question…
Q: 23) Refer to Figure 1.5. As income decreases, consumption decreases by a decreasing amount. If…
A: Income alludes to the money or earnings that an individual, household, business, or entity gets on a…
Q: What does point D on this graph represent? O An optimal choice O A choice on the budget constraint O…
A: An indifference curve is a graphical depiction of alternative pairings of two items that offer a…
Q: Suppose you plan to increase the price for your spooky haunted house hayrides from $25 to $35. As a…
A: A measure that quantifies how sensitive the quantity (Q) demanded of a good or service is to changes…
Q: The figure to the right shows a country in pretrade equilibrium at point X. Suppose this country is…
A: Equilibrium is the situation in the market when quantity demanded by consumers equals to the…
Q: Scenario: In the town of Isoville there are two grocery stores: Alfonso’s Ammenities and Bernice’s…
A: Game theory influences many elements of contemporary society, from pricing tactics and efficacy to…
Q: Describe the significance of customer trust in a company. Consider the businesses you patronize and…
A: Customer trust is essential for any company that wants to be successful. When customers trust a…
Q: A firm estimates its long-run production function to be Q = −0.0075K3L3 + 12K2L2 Suppose the firm…
A: The marginal product of labor measures the change in a firm's output due to a change in labor by one…
Q: The table below shows the total revenue (TR) and total cost (TC) for a perfectly competitive firm.…
A: Total revenue refers to the complete value of all goods and services sold by the company.It is the…
Q: A retirement account has an effective interest rate is 1% per month. If they want to have $800,000…
A: To calculate how much someone needs to contribute to their retirement account each paycheck to reach…
Q: Suppose that supply is defined by Qs = -2 + P/2 for P > 4. If P = 8, then the variable cost is equal…
A: The study and evaluation of corporate financial concerns using abstract economic concepts and ideas…
Q: What was the maximum change in GSP from the government spending
A: Keynesianism has made strides in its ability to solve economic downturns by government intervention,…
Q: a. Draw the marginal private cost of irrigation on the graph. Instructions: Use the tool provided…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Suppose Iyana operates a handicraft pop-up ratail shop that sells phone cases. Assume a perfectly…
A: This can be defined as a concept that shows that when a purchaser purchases an extra unit of any…
Q: In a competitive market characterized by increasing costs, the long-run industry supply curve gives…
A: In a perfectly competitive market, there are a large number of firms who sell identical products.…
Q: Fill in the Blank Question Suppose that when the price of apples is 25 cents each, there are to…
A: Market supply refers to the total quantity of a good or service that all producers in a market are…
Q: 6-30 The Johnson Company pays $1700 a month to a trucker to haul wastepaper and cardboard to the…
A: A financial report that focuses on the inflow and outflow of cash over a given time period is…
Q: Refer to the graph shown. If an increase in the demand for U.S. produced goods, services, and assets…
A: The demand curve is the downward-sloping curve.The supply curve is the upward-sloping curve.The…
Q: -You are given the PPF below for Macroville. The economy currently operates at point A with an…
A: Production Possibility Frontier refers to the different combinations of output that an economy can…
Q: If the inverse demand curve is p=100-Q and the marginal cost is constant at $10, how does charging…
A: The Profit is maximized where the Marginal Revenue is equal to the Marginal cost of…
Q: Figure: Monopoly Model Price O OPDJ. O OIHJ. O IPDH. O OSBJ. con average total cost ATC When the…
A: In a monopoly market structure, There exists a single seller. There exists high barriers to entry…
Q: Suppose advances in computer technology and the price level will will Increase; increase Increase;…
A: If the development of information technology leads to an increase in the productivity of workers, it…
Q: In defining money as M1, economists exclude time deposits because: the intrinsic value of time…
A: Money supply is the circulation of money in the economy. It includes the currency held by the…
Q: In class, we argued that if people could accumulate human as well as physical capital, the…
A: The growth rate of the economy in this case would be:where:g is the growth rate of the economys is…
Q: Natural resources are: a. not considered scarce because no one pays for them. O b. not used in…
A: The raw materials and assets provided by nature that can be used for economic production are natural…
Q: If household saving decreases by $4 million, business saving increases by $4 million, and the…
A: Household savings refers to the portion of income that is not spent on immediate consumption but…
Q: Answer the question based on the table below showing the marginal utility schedules for product X…
A: Utility-maximizing combination: A firm maximizes its utility combination where the marginal utility…
Q: An economy produces only two goods, oranges and VCRs. The quantities and prices for the years 1998…
A: CPI determines the average price level relative to base year prices. CPI will be computed by…
Q: If the equilibrium real GDP were higher than potential GDP, then a contractionary fiscal policy…
A: Inflationary gap refers to a situation where the real GDP will be more than the potential GDP. When…
Q: Refer to Figure 34-7. The aggregate-demand curve could shift from AD1 to AD2 as a result of O a. an…
A: Aggregate demand also represents the aggregate expenditure in the economy.The aggregate expenditure…
Q: Briefly explain about Inflation Targeted Framework (ITF) as a main policy instrument of the Central…
A: Inflation Targeting Framework (ITF): A monetary policy strategy where a central bank sets a specific…
Q: Annual growth in RGDP per capita in China has slowed in recent years due to the pandemic lockdown…
A: The annual growth rate of RGDP represents the percentage increase or decrease in a country's real…
Q: Income and substitution effects Consider a consumer that orders her preferences according to the…
A: Utility function : U = b *p Where , b = beer , p = pizzaPrice of beer = 2 Price of Pizza = 10…
Q: Refer to the supply and demand diagram below. e. a b. b a+c. C 9 There is no increase in producer…
A: Market dynamics are described as the ever-changing relationship of supply and demand, pricing…
Please provide an answer to the following with an explanation as to why the option is the correct answer:
In a fixed rent tenancy, risk is:
a) Borne by the tenant
b) Borne by the landlord
c) Shared between landlord and tenant
d) None of the above
Step by step
Solved in 3 steps
- True or False 1. A deferred annuity until ? period of ? interest, and A equal payments, can be compensated by paying A times [?/?, ?%, ? + 1] on the ? +1 period. 2. A zero profit implies that this is a breakeven point, and the amount of demand equals the amount of supply.Person A, Person B and Person C own stock in the same company. All of them are loss averse and have the same value function: v(x) = x/2 for gains and v(x) = 2x for losses. The stock's price is shown in the graph below Stock Price 100 90 80 95 80 90 70 70 60 60 50 50 40 30 20 10 0 October November December January Feburary March (a) (b) O Person A bought the stock in November and uses the purchase price as their reference point. If you ask them, how much would they say that they lost in terms of value when the price dropped from £95 to £70? Person B bought the stock in October and uses the peak price as their reference point. If you ask them, how much would they say that they lost in terms of value in January? In January, which month should Person B rather use as reference point in order to maximize their value? (d) [ Person C bought the stock in March. They expect to derive a value of at least +5 in April as compared to their reference point of the purchase price. What is the minimum…A company has to decide whether to invest money in the development of a microbiological product. The company’s research director has estimated that there is a 60% chance that a successful development could be achieved in 2 years. However, if the product had not been successfully developed at the end of this period, the company would abandon the project, which would lead to a loss in present-value terms of $3 million. In the event of a successful development, a decision would have to be made on the scale of production. The returns generated would depend on the level of sales which could be achieved over the period of the product’s life. For simplicity, these have been categorized as either high or low. If the company opted for large-volume production and high sales were achieved, then net returns with a present-value of $6 million would be obtained. However, large-scale production followed by low sales would lead to net returns with a present value of only $1 million. In contrast, if…
- Mr. Smith has some money to invest. He selected three stocks and two bond funds as possible investments, shown in the following table. Investment Stock A Stock B Stock C Bond-long term Bond-short term Risk Annual Return High Medium Low 15% 12% 9% 11% 8% One of Mr. Smith's investment requirements is "the total amount invested cannot exceed $500,000". Which option represents this constraint? Note: (X₁, X₂, X₁, X₁, and X, are investment in stock A, stock B, stock C, long term bond and short term bond, respectively1. Consider a wine dealer who has k bottles of wine. The dealer can sell them now (t = 0) or can store it for some time and then sell them later. The value of k bottles at t-th month is given by: Vt = ket The dealer can use the sales revenue as principal in a risk-free investment at rate r. (d) If the risk free rate is 5%, what is the optimal timing of sales?Risk can be defined as the effects of uncertainty on objectives and often manifests itself in risk to property and ownership, operations and ….. of funds. A) flow B) outflow
- Sam, after taking a $200 loan from the bank to finance an investment that pays $1000 50% of the time and $0 50% of the time at a 100% interest, discovers another riskier investment that pays out $5,000 but only 10% of the time, while the other 90% of the time it pays zero. Would the he want to switch to the riskier investment? Question 4 options: Yes because his return has increased No because his liability to the bank has increased No because his return has decreased None of the aboveA contract of insurance to indemnify the insured in the event of loss will NOT provide which one (1) of the following forms of payment to the insured? OA) Compensation for the loss or expenses incurred. OB) Reimbursement for the amount of the loss up to the limit of the policy. C) Restoring the insured as nearly as possible to his/her position before the loss. D) Reimbursement for the replacement cost of the property damaged or destroyed.stion 20 of 41 > You have some money to invest, and you don't really care about risk-the return is your sole focus. Which investment would probably be the most attractive to you? corporate bonds with a CCC rating corporate bonds with an AA rating government bonds large company stocks
- Suppose that you have a job paying $50,000 per year. With a 5% probability, next year your wage will be reduced to $20,000 for the year. (a) What is your expected income next year? (b) Suppose that you could insure yourself against the risk of reduced consumption next year. What would the actuarially fair insurance premium be?Question 8 The January 2023 S&P 500 cash index is 3950 points while the S&P 500 futures March 2023 index is 4000 and the contract value of each index point is $150. You are convinced the futures market will fall 20% by expiry. You are only prepared to buy or sell one futures contract.4) Increasing the fit of investment service to the long term objectives of each investor—moving from caveat emptor “product” sales to more durable, shared-understanding service relationships— would increase the duration or “loyalty” and thereby the economic value of client–manager relationships. (The Winners’ Game, by Charles D. Ellis, 2011) Select an alternative True False