Why do economists prefer when the government
introduces taxes in markets where supply and demand are more
inelastic than in markets where they are more elastic?
Why do economists prefer when the government introduces taxes in
markets where supply and demand are more inelastic than in markets
where they are more elastic?
Regulations have been the most preferred method of dealing with
externalities, particularly environmental externalities, but
economists prefer taxes. Explain and illustrate why this is the
case.
Why would you prefer to receive $100 today rather than wait and
receive $100 one year from now?
Prompts:
For the first part of the discussion post, list all the
potential explanations you can think of for the time value of
money. For each cause, write a sentence or two about how it
explains your preference for money today rather than money at some
future date. Let’s see how many different explanations we can
uncover.
For the second part of...
When discussing the multiplication of viruses,
virologist prefer to call the process replication rather than
production. Why do you think so? Would you agree with virologist
that 'replication' is the better term. Elaborate
By Definition, the pecking order Theory states that firms prefer
to issue debt rather than equity if internal finance is
insufficient, e.g. due to assymetric information and related
(mis)Interpretation by Investors.
What does "assymetric Information and Investor misinterpretation
actually mean in this context?" I would be very greatful for a
thoroughly explained answer.
Explain why Coronavirus and the ensuing recession is a demand
shock rather than a supply shock. Use current inflation and
unemployment data to make your case.