What distinguishes money from other assets.

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Answer 1

Question

Chapter 16, Problem 1QR

To determine

What distinguishes money from other assets.

Expert Solution & Answer

Explanation of Solution

Money is anything which is accepted as payment to the goods and services from a market. It acts as a medium of exchange, store of value, unit of account, and so forth. Any commodity that is being accepted by an economy for this purpose is considered as money. It is usually metal coins and paper currencies.

The assets are anything that can be tangible or intangible which can be owned and controlled in order to produce value. The companies hold these to produce a positive value in the economy. The buildings, machineries and the capital are the main assets of an economy.

Thus, it can be easily concluded that both money and assets are valuables and both have some value. However, the main difference between the money and assets is in the case of liquidity. Liquidity is the easiness in buying and selling of the assets in the market without many changes in the price. In this regard, money is the most liquid one than the other assets. All other assets widely vary in their liquidity rate and this is the main case that distinguishes money from all other assets.

Economics Concept Introduction

Concept introduction:

Money: Money is any item that is accepted as payment for the goods and services provided by an economy.

Assets: Assets are any tangible or intangible items in an economy that can be owned and controlled and 6are used for producing value.

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A firm operates with the production function Q = K2 L. Q is the number of units of output per day when the firm rents K units of capital and employs L workers each day. The manager has been given a production target: to produce 8,000 units per day. She knows that the daily rental price of capital is $400 per unit and the wage rate is $200 day. a. What is the returns to scale of this production function? Show mathematically. b. Currently the firm employs 80 workers per day. What is the firm’s daily total cost if it rents just enough capital to produce at its target? c. Compare the marginal product per dollar spent on K and on L when the firm operates at the input choice in part (b). What does this suggest about the way the firm might change its choice of K and L if it wants to reduce the total cost in meeting its target? Explain your answer very clearly. d. In the long run, how much K and L should the firm choose if it wants to minimize the cost of producing 8,000 units of output a day?…

Answer 2

Question

Chapter 16, Problem 1QR

To determine

What distinguishes money from other assets.

Expert Solution & Answer

Explanation of Solution

Money is anything which is accepted as payment to the goods and services from a market. It acts as a medium of exchange, store of value, unit of account, and so forth. Any commodity that is being accepted by an economy for this purpose is considered as money. It is usually metal coins and paper currencies.

The assets are anything that can be tangible or intangible which can be owned and controlled in order to produce value. The companies hold these to produce a positive value in the economy. The buildings, machineries and the capital are the main assets of an economy.

Thus, it can be easily concluded that both money and assets are valuables and both have some value. However, the main difference between the money and assets is in the case of liquidity. Liquidity is the easiness in buying and selling of the assets in the market without many changes in the price. In this regard, money is the most liquid one than the other assets. All other assets widely vary in their liquidity rate and this is the main case that distinguishes money from all other assets.

Economics Concept Introduction

Concept introduction:

Money: Money is any item that is accepted as payment for the goods and services provided by an economy.

Assets: Assets are any tangible or intangible items in an economy that can be owned and controlled and 6are used for producing value.

Want to see more full solutions like this?

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

Answer 3

Question

Chapter 16, Problem 1QR

To determine

What distinguishes money from other assets.

Expert Solution & Answer

Explanation of Solution

Money is anything which is accepted as payment to the goods and services from a market. It acts as a medium of exchange, store of value, unit of account, and so forth. Any commodity that is being accepted by an economy for this purpose is considered as money. It is usually metal coins and paper currencies.

The assets are anything that can be tangible or intangible which can be owned and controlled in order to produce value. The companies hold these to produce a positive value in the economy. The buildings, machineries and the capital are the main assets of an economy.

Thus, it can be easily concluded that both money and assets are valuables and both have some value. However, the main difference between the money and assets is in the case of liquidity. Liquidity is the easiness in buying and selling of the assets in the market without many changes in the price. In this regard, money is the most liquid one than the other assets. All other assets widely vary in their liquidity rate and this is the main case that distinguishes money from all other assets.

Economics Concept Introduction

Concept introduction:

Money: Money is any item that is accepted as payment for the goods and services provided by an economy.

Assets: Assets are any tangible or intangible items in an economy that can be owned and controlled and 6are used for producing value.

Want to see more full solutions like this?

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

Answer 4

Question

Chapter 16, Problem 1QR

To determine

What distinguishes money from other assets.

Expert Solution & Answer

Explanation of Solution

Money is anything which is accepted as payment to the goods and services from a market. It acts as a medium of exchange, store of value, unit of account, and so forth. Any commodity that is being accepted by an economy for this purpose is considered as money. It is usually metal coins and paper currencies.

The assets are anything that can be tangible or intangible which can be owned and controlled in order to produce value. The companies hold these to produce a positive value in the economy. The buildings, machineries and the capital are the main assets of an economy.

Thus, it can be easily concluded that both money and assets are valuables and both have some value. However, the main difference between the money and assets is in the case of liquidity. Liquidity is the easiness in buying and selling of the assets in the market without many changes in the price. In this regard, money is the most liquid one than the other assets. All other assets widely vary in their liquidity rate and this is the main case that distinguishes money from all other assets.

Economics Concept Introduction

Concept introduction:

Money: Money is any item that is accepted as payment for the goods and services provided by an economy.

Assets: Assets are any tangible or intangible items in an economy that can be owned and controlled and 6are used for producing value.

Want to see more full solutions like this?

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

Answer 5

Chapter 16, Problem 1QR

To determine

What distinguishes money from other assets.

Expert Solution & Answer

Explanation of Solution

Money is anything which is accepted as payment to the goods and services from a market. It acts as a medium of exchange, store of value, unit of account, and so forth. Any commodity that is being accepted by an economy for this purpose is considered as money. It is usually metal coins and paper currencies.

The assets are anything that can be tangible or intangible which can be owned and controlled in order to produce value. The companies hold these to produce a positive value in the economy. The buildings, machineries and the capital are the main assets of an economy.

Thus, it can be easily concluded that both money and assets are valuables and both have some value. However, the main difference between the money and assets is in the case of liquidity. Liquidity is the easiness in buying and selling of the assets in the market without many changes in the price. In this regard, money is the most liquid one than the other assets. All other assets widely vary in their liquidity rate and this is the main case that distinguishes money from all other assets.

Economics Concept Introduction

Concept introduction:

Money: Money is any item that is accepted as payment for the goods and services provided by an economy.

Assets: Assets are any tangible or intangible items in an economy that can be owned and controlled and 6are used for producing value.

Answer 6

Chapter 16, Problem 1QR

To determine

What distinguishes money from other assets.

Expert Solution & Answer

Explanation of Solution

Money is anything which is accepted as payment to the goods and services from a market. It acts as a medium of exchange, store of value, unit of account, and so forth. Any commodity that is being accepted by an economy for this purpose is considered as money. It is usually metal coins and paper currencies.

The assets are anything that can be tangible or intangible which can be owned and controlled in order to produce value. The companies hold these to produce a positive value in the economy. The buildings, machineries and the capital are the main assets of an economy.

Thus, it can be easily concluded that both money and assets are valuables and both have some value. However, the main difference between the money and assets is in the case of liquidity. Liquidity is the easiness in buying and selling of the assets in the market without many changes in the price. In this regard, money is the most liquid one than the other assets. All other assets widely vary in their liquidity rate and this is the main case that distinguishes money from all other assets.

Economics Concept Introduction

Concept introduction:

Money: Money is any item that is accepted as payment for the goods and services provided by an economy.

Assets: Assets are any tangible or intangible items in an economy that can be owned and controlled and 6are used for producing value.

Answer 7

Chapter 16, Problem 1QR

To determine

What distinguishes money from other assets.

Answer 8

Expert Solution & Answer

Explanation of Solution

Money is anything which is accepted as payment to the goods and services from a market. It acts as a medium of exchange, store of value, unit of account, and so forth. Any commodity that is being accepted by an economy for this purpose is considered as money. It is usually metal coins and paper currencies.

The assets are anything that can be tangible or intangible which can be owned and controlled in order to produce value. The companies hold these to produce a positive value in the economy. The buildings, machineries and the capital are the main assets of an economy.

Thus, it can be easily concluded that both money and assets are valuables and both have some value. However, the main difference between the money and assets is in the case of liquidity. Liquidity is the easiness in buying and selling of the assets in the market without many changes in the price. In this regard, money is the most liquid one than the other assets. All other assets widely vary in their liquidity rate and this is the main case that distinguishes money from all other assets.