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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.
Banking Infrastructure: An efficient financial system can influence the long-term growth through three important channels, namely: 1) increase in the proportion of saving tran
GDP Price Level At the equilibrium level of income aggregate spending in the economy equals aggregate output. All along, we have assumed that the general price level remains un
Explain about the optimal consumption rule. The optimal consumption rule: While a consumer maximizes utility, the marginal utility per dollar spent should be similar for all
What are the properties of cost function? Properties of Cost Functions: Some similarities are here with consumer theory. Such similarities are actually exact while one compa
what is Microeconomics?
choose a topic from microeconomics that matters to you and find a recent news article covering that topic?
Assume that a persion lives for three equal periods: Youth, Early Adulthood and Late Adulthood. The person dies after later adulthood period ends. If one invests $200 in educatio
9. The average supernormal profit for the firm is
Describe the poverty cycle and suggest how a developing country can break the cycle. The poverty cycle is explained as the trap developing countries can land in; low incomes →
Question : (a) Explain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether c
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