Illiquid assets and rank them from most liquid to illiquid.

Question

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Answer 1

Question

Chapter 13, Problem 1CQ

To determine

Illiquid assets and rank them from most liquid to illiquid.

Expert Solution & Answer

Explanation of Solution

The liquidity of an asset refers to its ease and quickness in converting itself into cash without any significant loss in value. Cash in hand, cash at bank, short-term investments, high grade bonds, and stocks are some of the examples of liquid assets.

On the other hand, illiquid assets cannot be converted easily and quickly into cash without any loss in the value. Assets such as land, houses, a family-owned business, business equipment, and artistic works are some of the examples of illiquid assts.

Economics Concept Introduction

Liquid asset: A liquid asset refers to the asset that can be converted easily and quickly into cash without any significant loss of value.

Illiquid asset: An illiquid asset refers to the asset that cannot be converted easily and quickly into cash without any loss of value.

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M” method Given the following model, solve by the method of “M”. (see image)

As indicated in the attached image, U.S. earnings for high- and low-skill workers as measured by educational attainment began diverging in the 1980s. The remaining questions in this problem set use the model for the labor market developed in class to walk through potential explanations for this trend. 1. Assume that there are just two types of workers, low- and high-skill. As a result, there are two labor markets: supply and demand for low-skill workers and supply and demand for high-skill workers. Using two carefully drawn labor-market figures, show that an increase in the demand for high skill workers can explain an increase in the relative wage of high-skill workers. 2. Using the same assumptions as in the previous question, use two carefully drawn labor-market figures to show that an increase in the supply of low-skill workers can explain an increase in the relative wage of high-skill workers.

Answer 2

Question

Chapter 13, Problem 1CQ

To determine

Illiquid assets and rank them from most liquid to illiquid.

Expert Solution & Answer

Explanation of Solution

The liquidity of an asset refers to its ease and quickness in converting itself into cash without any significant loss in value. Cash in hand, cash at bank, short-term investments, high grade bonds, and stocks are some of the examples of liquid assets.

On the other hand, illiquid assets cannot be converted easily and quickly into cash without any loss in the value. Assets such as land, houses, a family-owned business, business equipment, and artistic works are some of the examples of illiquid assts.

Economics Concept Introduction

Liquid asset: A liquid asset refers to the asset that can be converted easily and quickly into cash without any significant loss of value.

Illiquid asset: An illiquid asset refers to the asset that cannot be converted easily and quickly into cash without any loss of value.

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Answer 3

Question

Chapter 13, Problem 1CQ

To determine

Illiquid assets and rank them from most liquid to illiquid.

Expert Solution & Answer

Explanation of Solution

The liquidity of an asset refers to its ease and quickness in converting itself into cash without any significant loss in value. Cash in hand, cash at bank, short-term investments, high grade bonds, and stocks are some of the examples of liquid assets.

On the other hand, illiquid assets cannot be converted easily and quickly into cash without any loss in the value. Assets such as land, houses, a family-owned business, business equipment, and artistic works are some of the examples of illiquid assts.

Economics Concept Introduction

Liquid asset: A liquid asset refers to the asset that can be converted easily and quickly into cash without any significant loss of value.

Illiquid asset: An illiquid asset refers to the asset that cannot be converted easily and quickly into cash without any loss of value.

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Answer 4

Question

Chapter 13, Problem 1CQ

To determine

Illiquid assets and rank them from most liquid to illiquid.

Expert Solution & Answer

Explanation of Solution

The liquidity of an asset refers to its ease and quickness in converting itself into cash without any significant loss in value. Cash in hand, cash at bank, short-term investments, high grade bonds, and stocks are some of the examples of liquid assets.

On the other hand, illiquid assets cannot be converted easily and quickly into cash without any loss in the value. Assets such as land, houses, a family-owned business, business equipment, and artistic works are some of the examples of illiquid assts.

Economics Concept Introduction

Liquid asset: A liquid asset refers to the asset that can be converted easily and quickly into cash without any significant loss of value.

Illiquid asset: An illiquid asset refers to the asset that cannot be converted easily and quickly into cash without any loss of value.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 13, Problem 1CQ

To determine

Illiquid assets and rank them from most liquid to illiquid.

Expert Solution & Answer

Explanation of Solution

The liquidity of an asset refers to its ease and quickness in converting itself into cash without any significant loss in value. Cash in hand, cash at bank, short-term investments, high grade bonds, and stocks are some of the examples of liquid assets.

On the other hand, illiquid assets cannot be converted easily and quickly into cash without any loss in the value. Assets such as land, houses, a family-owned business, business equipment, and artistic works are some of the examples of illiquid assts.

Economics Concept Introduction

Liquid asset: A liquid asset refers to the asset that can be converted easily and quickly into cash without any significant loss of value.

Illiquid asset: An illiquid asset refers to the asset that cannot be converted easily and quickly into cash without any loss of value.

Answer 6

Chapter 13, Problem 1CQ

To determine

Illiquid assets and rank them from most liquid to illiquid.

Expert Solution & Answer

Explanation of Solution

The liquidity of an asset refers to its ease and quickness in converting itself into cash without any significant loss in value. Cash in hand, cash at bank, short-term investments, high grade bonds, and stocks are some of the examples of liquid assets.

On the other hand, illiquid assets cannot be converted easily and quickly into cash without any loss in the value. Assets such as land, houses, a family-owned business, business equipment, and artistic works are some of the examples of illiquid assts.

Economics Concept Introduction

Liquid asset: A liquid asset refers to the asset that can be converted easily and quickly into cash without any significant loss of value.

Illiquid asset: An illiquid asset refers to the asset that cannot be converted easily and quickly into cash without any loss of value.

Answer 7

Chapter 13, Problem 1CQ

To determine

Illiquid assets and rank them from most liquid to illiquid.

Answer 8

Expert Solution & Answer

Explanation of Solution

The liquidity of an asset refers to its ease and quickness in converting itself into cash without any significant loss in value. Cash in hand, cash at bank, short-term investments, high grade bonds, and stocks are some of the examples of liquid assets.

On the other hand, illiquid assets cannot be converted easily and quickly into cash without any loss in the value. Assets such as land, houses, a family-owned business, business equipment, and artistic works are some of the examples of illiquid assts.