by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How does Education yield a Private and Social Rate of Return?The investment in anything, whether it is the construction of a new power plant or research in a new cancer treatment, usually requires a certain upfront cost with an uncertain future benefit. The investment...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How does New Technology give rise to Positive Externalities?Will private firms in a market economy underinvest in research and technology? If a firm builds a factory or buys a piece of equipment, the firm receives all the economic benefits that result from the...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How does Market Competition Affect Innovation?Market competition can provide an incentive for discovering new technology because a firm can earn higher profits by finding a way to produce products more cheaply or to create products with characteristics consumers...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How are Usury Laws as Price Ceilings in Financial Markets?Usury Laws act as Price Ceilings in Financial Markets as they prohibit lenders from charging above a stated rate of interest.The demand and supply model predicts that at the lower price ceiling interest rate,...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Supply and Demand in Financial Markets?In any market, the price is what suppliers receive and what demanders pay. In financial markets, those who supply financial capital through saving expect to receive a rate of return, while those who demand financial...
