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Q. What do you meant by Derivatives?
Derivatives: A derivative is a financial asset whose resale value depends on the value of other financial assets at different points in time. Its value is thus ‘derived' from the value of other financial assets and is thus very difficult to predict. Illustrations of derivatives include futures, options and swaps.
use of diagram how the price mechanism operates to allocate scarce resources. use examples to illustrate the answer.
Adding the economic activities of government to the circular flow model shows that: 1. Government spending creates inflation 2. Government purchases of goods and services,
Explain about the perfect competition according to economics theory. The procedure of testing and refining theories is the key to the development of modern economics like a sci
Explain the detail central problem of an economy?
Insurance - Risk averse are willing to pay to keep away from risk. - If cost of insurance equals expected loss, risk averse people will buy sufficient insurance to totally r
Development plan: A Development Plan is a document which contains a policy framework and programme of development for a time period for a country. It sets out the general meas
Expectations played a major role in Keynes' theory of the determination of aggregat output and employment in market economies in the short run. Expectations about future yields on
Relatiön between TC ,TFC and TVC
what is consumer''s choice involving risk.preference toward risk.
Cardinal Theory: An Introduction In cardinal approach, utility is measured cardinally or numerically in terms of money. The consumer not only knows which one is preferred but
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