your niece just started her college career with a major in economics she is curious as to the interrelationship between the success of an economy and the financial markets concepts and financial institutions accordingly she has developed a list of qu

Part A

Your niece just started her college career with a major in economics. She is curious as to the interrelationship between the success of an economy and the financial markets, concepts, and financial institutions. Accordingly, she has developed a list of questions addressing these issues and has asked that you explain the ideas.

  • What are the financial markets and what purposes do they serve?
  • What are financial intermediaries? How do these intermediaries function in the economy?
  • What is a federal government budget deficit? What is the national debt? How does a budget deficit affect the economy?

She is also curious about the time value of money concepts. Specifically, she has the following questions about these concepts:

  • Why are consumers considered to be risk averse? What methods could be used to deal with risk?
  • It has been said that a dollar received today is worth more than a dollar received tomorrow. What does this mean and what is the significance to the economy?
  • What is the difference between the present value of a future sum of money and the future value of a present sum of money? What is the significance of these concepts to economics?
  • If you deposited $1,000 in an account paying 6% interest compounded annually, how long would it take to double?

Deliverables:

  • Prepare a 3-4 page Microsoft Word document that addresses the above-noted concerns and meets APA standards.
  • Include a summary section in your report that contains 5-7 bullet points identifying your major findings or conclusions of your paper.
  • Submit the summary section as your initial post in the Discussion Area by the due date assigned. Include the full report as an attachment to your posting.
  • Continue your discussions until the end of the week by commenting on at least two other submissions by your peers, identifying the strengths and weaknesses of each post.

Part B

Question 1 (1 point)

Adam Smith’s book The Wealth of Nations was published in

Question 1 options:

a)

1692.

b)

1776.

c)

1816.

d)

1936.

Question 2 (1 point)

Which of the following statements best characterizes a basic difference between market economies and centrally-planned economies?

Question 2 options:

a)

b)

The self-interest of households is reflected more fully in the outcome of a centrally-planned economy than in the outcome of a market economy.

c)

Government plays a larger role in the economic affairs of a market economy than in the economic affairs of a centrally-planned economy.

d)

None of the above are correct.

Question 3 (1 point)

Which of the following statements exemplifies a principle of individual decisionmaking?

Question 3 options:

a)

b)

Governments can sometimes improve market outcomes.

c)

The cost of something is what you give up to get it.

d)

Question 4 (1 point)

When a society cannot produce all the goods and services people wish to have, it is said that the economy is expe-riencing

Question 4 options:

a)

scarcity

b)

surpluses.

c)

inefficiencies.

d)

inequalities.

Question 5 (1 point)

Economics is the study of

Question 5 options:

a)

production methods.

b)

c)

d)

the interaction of business and government.

Question 6 (1 point)

The production possibilities frontier is a graph that shows the various combinations of output that an economy can possibly produce given the available factors of production and

Question 6 options:

a)

society’s preferences.

b)

the available production technology.

c)

a fair distribution of the output.

d)

the available demand for the output.

Question 7 (1 point)

An example of an externality is the impact of

Question 7 options:

a)

bad weather on the income of farmers.

b)

the personal income tax on a person’s ability to purchase goods and services.

c)

pollution from a factory on the health of people in the vicinity of the factory.

d)

Question 8 (1 point)

Ellie decides to spend two hours taking a nap rather than attending her classes. Her opportunity cost of napping is

Question 8 options:

a)

the value of the knowledge she would have received had she attended class.

b)

the $24 she could have earned if she had worked at her job for those two hours.

c)

d)

Question 9 (1 point

It is possible for an economy to increase its production of both goods if the economy

Question 9 options:

a)

moves downward and to the right along its production possibilities frontier and the frontier is bowed outward.

b)

moves upward and to the left along its production possibilities frontier and the frontier is bowed outward.

c)

moves in either direction along its production possibilities frontier and the frontier is a straight line.

d)

moves from a situation of inefficient production to a situation of efficient production.

Question 10 (1 point)

Laws that restrict the smoking of cigarettes in public places are examples of government intervention that is in-tended to reduce

Question 10 options:

a)

efficiency.

b)

equality.

c)

externalities.

d)

productivity.

Question 11 (1 point)

Figure 2-4

Refer to Figure 2-4 If this economy devotes all of its resources to the production of notepads, then it will produce

Question 11 options:

a)

0 notepads and 40 lamps.

b)

35 notepads and 20 lamps.

c)

70 notepads and 0 lamps.

d)

70 notepads and 40 lamps.

Question 12 (1 point)

Production is efficient if the economy is producing at a point

Question 12 options:

a)

b)

outside the production possibilities frontier.

c)

on or inside the production possibilities frontier.

d)

Question 13 (1 point)

The marginal benefit Claire gets from purchasing a third pair of flip-flops is

Question 13 options:

a)

b)

more than the marginal cost of purchasing the third pair of flip-flops.

c)

d)

Question 14 (1 point)

Bill is restoring a car and has already spent $4000 on the restoration. He expects to be able to sell the car for $5800. Bill discovers that he needs to do an additional $2400 of work to make the car worth $5800 to potential buyers. He could also sell the car now, without completing the additional work, for $3800. What should he do?

Question 14 options:

a)

He should sell the car now for $3800.

b)

He should keep the car since it wouldn’t be rational to spend $6400 restoring a car and then sell it for only $5800.

c)

He should complete the additional work and sell the car for $5800.

d)

It does not matter which action he takes since the outcome will be the same either way.

Question 15 (1 point)

In the circular-flow diagram, which of the following items does not flow from households to firms? (

Question 15 options:

a)

b)

land, labor, and capital

c)

d)

profit

Question 16 (1 point)

Figure 2-6

Refer to Figure 2-6. Unemployment could cause this economy to produce at which point(s)?

Question 16 options:

C, D, F, G

C, F, G

D

Question 17 (1 point)

Which of the following areas of study typifies macroeconomics as opposed to microeconomics?

Question 17 options:

a)

the effects of rent control on the availability of housing in New York City

b)

the economic impact of tornadoes on cities and towns in Oklahoma

c)

how tariffs on shoes affects the shoe industry

d)

the effect on the economy of changes in the nation’s unemployment rate

Question 18 (1 point)

Inflation is defined as

Question 18 options:

a)

b)

c)

an increase in the overall level of output in the economy.

d)

an increase in the overall level of prices in the economy.

Question 19 (1 point

Figure 2-5

Refer to Figure 2-5. If this economy devotes one-half of its available resources to the production of soccer balls and the other half to the production of sweaters, it could produce

Question 19 options:

a)

150 sweaters and 100 soccer balls.

b)

150 sweaters and 150 soccer balls

c)

d)

We would have to know the details of this economy’s technology in order to determine this.

Question 20 (1 point)

Katie is planning to sell her house, and she is considering making two upgrades to the house before listing it for sale. Replacing the carpeting will cost her $2,500 and replacing the roof will cost her $9,000. Katie expects the new carpeting to increase the value of her house by $3,000 and the new roof to increase the value of her house by $7,000.

Question 20 options:

a)

She should make both improvements to her house.

b)

She should replace the carpeting but not replace the roof.

c)

She should replace the roof but not replace the carpeting.

d)

She should not make either improvement to her house.

Question 21 (1 point)

Which of the following statements best represents the principle represented by the adage, “There is no such thing as a free lunch”?

Question 21 options:

a)

Melissa can attend the concert only if she takes her sister with her

b)

Greg is hungry and homeless

c)

Brian must repair the tire on his bike before he can ride it to class

d)

Kendra must decide between going to Colorado or Cancun for spring break

Question 22 (1 point)

Which of the following is an example of an externality?

Question 22 options:

a)

Annie purchases a handbag.

b)

Bob’s dog barks loudly during the night waking his neighbors.

c)

Clark sells a book to Calvin.

d)

David watches a scary movie.

Question 23 (1 point)

When a single person (or small group) has the ability to influence market prices, there is

Question 23 options:

a)

competition.

</tabl

 

Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code “Newclient” for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.


The post your niece just started her college career with a major in economics she is curious as to the interrelationship between the success of an economy and the financial markets concepts and financial institutions accordingly she has developed a list of qu appeared first on The Nursing Hub.

"Is this question part of your assignment? We Can Help!"

Essay Writing Service

b)

market power.