Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506756
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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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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Students have asked these similar questions
Tasks
Exercise 1
Assess the following functions:
1. f(x)= x2+6x+2
2.f '(x)=10x-2x2+5
a. Find the stationary points. (5 marks)
b. Determine whether the stationary point is a maximum or minimum. (5 marks)
c. Draw the corresponding curves (5 marks)
Problem 2:
The sales data over the last 10 years for the Acme Hardware Store are as follows:
2003
$230,000
2008
$526,000
2004
276,000
2009
605,000
2005
328,000
2010
690,000
2006
388,000
2011
779,000
2007
453,000
2012
873,000
1. Calculate the compound growth rate for the period of 2003 to 2012.
2. Based on your answer to part a, forecast sales for both 2013 and 2014.
3. Now calculate the compound growth rate for the period of 2007 to 2012.
1. Based on your answer to part e, forecast sales for both 2013 and 2014.
5. What is the major reason for the differences in your answers to parts b and d? If you were to
make your own projections, what would you forecast? (Drawing a graph is very helpful.)
Exercise 4A firm has the following average cost: AC = 200 + 2Q – 36
Q
Find the stationary point and determine if it is a maximum or a minimum.b. Find the marginal cost function.
Chapter 13 Solutions
Macroeconomics: Private and Public Choice (MindTap Course List)
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