What’s the difference between a liquidity crisis and a solvency crisis? When Lehman Brothers went under, its debts (liabilities) were much greater than its assets. Did Lehman Brothers experience a solvency or a liquidity issue?

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Allen would like to open a business to produce a software that he thinks would be well-received by the market. However, the investment needed to start a business is very high and Allen could barely cover it on his own. The software is very likely to be successful and generate profits, but it takes 2 years before profits are generated. Explain why the existence of a financial intermediary, like a bank, makes Allen’s investment more likely.
Banks are financial intermediaries engaged in maturity transformation. Explain what it means for banks to engage in maturity transformation and what are the risks associated with it for banks and depositors. How do banks make profits? [8 marks]
Now assume that Allen needs to borrow £300 to produce his software, which will generate £500 in two years. There are N savers in the economy, each endowed with £2 and each facing a 25% chance that there will be an emergency and they will need their £2 back. What is the minimum value of N such that a financial intermediary can solve the problem of getting money from savers to borrowers?

After the 2009 financial crisis, countries in the Basel Committee on Banking Supervision have agreed to raise the mandatory reserves for banks. Explain what happens to the money multiplier and the bank deposit multiplier if the reserve ratio is increased and what governments need to do if they wish to maintain the previous level of broad money 𝑀𝑀.

What’s the difference between a liquidity crisis and a solvency crisis? When Lehman Brothers went under, its debts (liabilities) were much greater than its assets. Did Lehman Brothers experience a solvency or a liquidity issue?

Explain if marginal utility can be negative. Examine the diamond-water paradox. Why are diamonds more expensive than water? Evaluate the law of diminishing marginal utility.

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Prior to beginning work on this discussion, read Farah Mohammed’s article, Why Are Diamonds More Expensive Than Water? (Links to an external site.), as well as Chapter 5 in your textbook, especially Sections 5.1 and 5.3, and respond to the following:
Amacher, R. & Pate, J. (2019). Principles of microeconomics (2nd ed.). Retrieved from https://content.ashford.edu

Describe the relationship between total utility and marginal utility.
Explain if marginal utility can be negative.
Examine the diamond-water paradox. Why are diamonds more expensive than water?
Evaluate the law of diminishing marginal utility.
Identify some items, explaining your reasoning, that do not follow the law of diminishing marginal utility.
Evaluate how the law of diminishing marginal utility can explain the diamond-water paradox.
The Law of Diminishing Marginal Utility paper

Describe how a tariff affects the market for a good the United States produces but is a net importer (for example, of steel).

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Tariffs have become a hot topic. In a paper:

Describe how a tariff affects the market for a good the United States produces but is a net importer (for example, of steel).
Draw a supply and demand graph (do not just copy and paste a graph; create your own) illustrating world trade and a tariff.
Identify winners and losers from world trade and winners and losers from the tariff (be sure to include domestic consumers, domestic producers, foreign consumers, foreign producers, and government in your discussion).
Evaluate two of the arguments for tariffs from the textbook.
Include at least three scholarly references in addition to the course textbook. Sources such as The Balance, EconomicsHelp.org, Investopedia, and other help websites are not acceptable.

Identify the determinants of the price elasticity of demand. Explain each one. Determine whether each of the following items is elastic or inelastic: bottled water, gourmet coffee, Apple cell phones, and gasoline

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Read Chapter 4 to answer the questions below. Identify the determinants of the price elasticity of demand. Explain each one. Determine whether each of the following items is elastic or inelastic: bottled water, gourmet coffee, Apple cell phones, and gasoline. Explain your reasoning. Distinguish between a necessity and a luxury. How are the price elasticity of demand and total revenue related? Why is the price elasticity of demand important to pricing? Your initial post should be a minimum of 280 words. But, for the discussion questions, I require that you include the section number where you found your answers. For example: (Amacher & Pate, 2019, section 2.3). Please be thorough when answering each question.

Describe some differences between a positive externality and a negative externality. Provide one example of a positive externality and a negative externality, respectively. Explain your reasoning.

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Read Chapters 6 & 7 to answer the following questions. Remeber to answer the questions thoroughly. Externalities are costs or benefits associated with consumption or production that are not incurred by the consumer or producer and are therefore not reflected in market prices. The cost or benefit of an externality remains external when falling to parties other than the buyer or seller.
Respond to the following:
Describe some differences between a positive externality and a negative externality.
Provide one example of a positive externality and a negative externality, respectively. Explain your reasoning.
How could you solve your examples of externalities to attain market efficiency?
Does the government need to intervene with externalities to effect market efficiency?

Describe the relationship between total utility and marginal utility. Explain if marginal utility can be negative. Examine the diamond-water paradox. Why are diamonds more expensive than water?

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Prior to beginning work on this discussion, read Farah Mohammed’s article, Why Are Diamonds More Expensive Than Water?, as well as Chapter 5 in your textbook, especially Sections 5.1 and 5.3, and respond to the following:
Describe the relationship between total utility and marginal utility.
Explain if marginal utility can be negative.
Examine the diamond-water paradox. Why are diamonds more expensive than water?
Evaluate the law of diminishing marginal utility.
Identify some items, explaining your reasoning, that do not follow the law of diminishing marginal utility.
Evaluate how the law of diminishing marginal utility can explain the diamond-water paradox.

Where is behavioral economics headed post New York Covid – 19 Lock down?Provide facts from United States scholarly journals and highly trusted websites from New York that prove Richard H Thaler’s theories on Nudge Theory, Mental Accounting, and Choice Architecture

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Where is behavioral economics headed post New York Covid – 19 Lockdown?

This article must provide a full understanding of Richard H Thaler’s lecture “From cashews to Nudges the evolution of behavioral economics”. Make direct connections from his lecture and theories to what is going on in New York & New Yorkers during this covid 19 (coronavirus) pandemic lockdown; New Yorkers shopping, spending & behavioral habits. Provide facts from United States scholarly journals and highly trusted websites from New York that prove Richard H Thaler’s theories on Nudge Theory, Mental Accounting, and Choice Architecture by exploring the consequences and or benefits of limited rationality, social preferences, and lack of self-control from the lens of a New Yorker. A question that should be answered in this article is, where is behavioral economics headed post New York Covid – 19 Lockdown? This article should be detailed but clear and concise so that anyone who is not familiar with behavioral economics walks away learning something and someone reading this outside the state of New York understands why New York is so unique. This article should not be political but instead focused on economics and finance facts. All articles used must be recent and up to date. Where New York and New Yorkers stand today June 1st, 2020 and what New York will look like by the end of 2020 based on the facts you find and Richard H Thalers lecture and behavioral economics .

Is price discrimination generally illegal? In the below list which ones are illegal? What about the ethics of price discrimination? Discuss.

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Is price discrimination generally illegal? In the below list which ones are illegal? What about the ethics of price discrimination? Discuss.

Examples:
Higher interest rates on car loans for borrowers with lower credit scores
Charging ethnic minorities higher rates on mortgages and mortgage refinancing
Charging higher rates on business loans

If Coke’s price increases, what will happen to the demand or quantity demanded for Pepsi, all other things being equal? Explain whether it is a movement along the demand curve or a shift of the demand curve.

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A change in quantity demanded (or a movement along the demand curve) is caused by a change in its own price while a change in demand (or a shift of the demand curve) is caused by a change in nonprice determinants that include changes in consumers’ income, taste or preference, price of other goods, expected future price, etcetera. Respond to the following:

If Coke’s price increases, what will happen to the demand or quantity demanded for Pepsi, all other things being equal?
Explain whether it is a movement along the demand curve or a shift of the demand curve.
If Coca-Cola develops a new technology that makes Coke tastier, what will happen to the supply curve and demand curve for Coke?
Is the demand (curve or schedule) for Coke or Pepsi seasonally different?
What is the relationship between Coke and Pepsi? Do they have the same demand curve or are they different? Explain your reasoning.

What is the Economic profit per month of alternative A? What cognitive biases should Foster be on the lookout for during the decision making process? Explain your reasoning.

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1. Use your analysis to justify the bank loan application for the recommended alternative.

2. What risks would Foster and the bank consider in evaluating the investment?

3. What cognitive biases should Foster be on the lookout for during the decision making process? Explain your reasoning.

4. What is the Economic profit per month of alternative A?