Economics Answers

Calculate the price of bond with a coupon rate of 12% having 5 years to maturity. Its par value is 10,000 dollars and the discount rate is 12%

Discuss the limitations of financial ratios in using them to evaluate business

Justify recommendation for the improvement of information and knowledge needed for above decision making.

Since September 2014 the euro has devalued 20% against the US dollar (from 1.3 to 1.05$/€), and then regained some value in April 2015 back to a peak of 1.15$/€. After that event, the euro has dropped again to 1.1$/€. What is the likely range of value of the EUR/USD in October 2015

I am having problems plotting a supply and demand graph on excel just using an equation and also just creating graphs to show a shift in the demand or supply curve without any numbers. Also how to calculate relative price concerning two commodities.

“Even if government spends its money on wasteful projects, it is still worth because it creates jobs.”

TRUE/FALSE
1. When externalities exist, economic efficiency is achieved when marginal private benefit equals
marginal private cost.
2. Reducing pollution to zero emissions would be socially efficient.
3. The economically efficient car is the one with the lowest emissions.
4. Competitive firms consider private costs, but disregard external costs, when making their economic decisions.

multiple choice
1. From an economic viewpoint, the optimal amount of pollution:
a. is zero since all pollution imposes costs on society.
b. is that amount which firms create when they maximize economic profits by setting their
marginal private costs equal to market price.
c. is that amount where the marginal social costs of producing a good precisely equals the
price of the good.
d. b and c are correct.

2. In order to increase society's total welfare (social efficiency), a production process that produces a negative externality should be:
a. taxed.
b. provided by the government.
c. ignored.
d. subsidized.

MULTIPLE CHOICE
1. If a chemical manufacturer is forced to internalize the externality associated with the air pollution it creates:
a. the price of chemicals will rise.
b. the supply curve of chemicals will shift to the left.
c. the price of chemicals will fall.
d. both a. and b. will occur.

2. Consider a competitive industry in which a "green" company uses a cleaner but costlier production method than is used by other firms. In the long run, the "green" company will:
a. earn more profit than will the typical firm in the industry.
b. drive its competitors out of business.
c. have economic losses and exit the industry.
d. charge a higher - than - average price for its product.

MULTIPLE CHOICE
1. An externality occurs when:
a. people other than those making the demand and supply decisions share the benefits or the
costs of an activity.
b. only the people making the demand and supply decisions share the benefits or the costs of
an activity.
c. private costs equal social costs.
d. private costs of production are ignored.

2. When a firm's activities create a negative externality:
a. the marginal social cost curve will lie everywhere below the firm's marginal private cost curve.
b. the marginal social benefit curve will lie everywhere below the firm's marginal private benefit curve.
c. the marginal social cost curve will lie everywhere above the firm's marginal private cost curve.
d. the marginal social benefit curve will lie everywhere above the firm's marginal private benefit curve.