Question

How do economists define a "bubble"? Provide an example of an asset market that you think...

How do economists define a "bubble"? Provide an example of an asset market that you think could be the next bubble and explain why. (Do not use the examples cited in your textbook).

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Assets bubble occurs when demand for certain assets leads to rise in its price and such price is even larger than its true value. Rise in the price is not sustainable. Investors tend to hold the assets and demand keeps pouring in, eventually, there is crash in the price and bubble finally bursts out.

Amid the COVID-19, the recession is going to hit world economies. thus, people are looking for safe investment. Thus gold price bubble might be seen. People are making investments in the gold. Gold prices are likely to rise further.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Economists do not define “pubic goods” as any good provided by a government.  However, it is frequently...
Economists do not define “pubic goods” as any good provided by a government.  However, it is frequently the case that what economists do identify as public goods actually are provided by a government. a.   Explain the two characteristics that economists use to define a public good.  For each, give an example of a good that displays that characteristic but not the other characteristic.  Do not use examples from the text, the lecture, or the problem set.     b.  Why are public goods, as defined by economists,...
1. Explain how a bubble can develop in the market for an asset.
1. Explain how a bubble can develop in the market for an asset.
Provide an example of an asset and a liability from your everyday life. Explain what makes...
Provide an example of an asset and a liability from your everyday life. Explain what makes one an asset and the other a liability. How does each affect your equity? Now imagine that you own your own business. How might your transactions impact your company’s assets, liabilities, and owner’s equity? Why do you think it is important to analyze personal and business transactions?
1. Define the characteristics of a market, command and mixed economies. Provide the name of one...
1. Define the characteristics of a market, command and mixed economies. Provide the name of one nation for each type of economy. Explain why you selected these examples. 2. Define the characteristics of capitalism, socialism and communism. Provide the name of one nation for each type of economy. Explain why you selected these examples. 3. Conduct an Internet search and locate the U.S. unemployment rate at the height of the Great Recession (2009) and at the present time. What is...
Define the characteristics of a perfectly competitive market with an example for each. Discuss how the...
Define the characteristics of a perfectly competitive market with an example for each. Discuss how the characteristics fit into the examples you provide. Each example needs to come from a peer-reviewed (scholarly) source. Finally, how does consumer and producer surplus help give a perfectly competitive market an advantage? Please be specific.
What macroeconomic variable do you think corporate financial managers should be preparing for in the next...
What macroeconomic variable do you think corporate financial managers should be preparing for in the next 5 to 10 years? What concepts and/or skills learned in this class will prepare you for the impact of this variable in your professional or personal life? Please explain and provide specific examples. In your response posts, provide additional suggestions for how the concepts and/or skills provided could be used in the real world. Reference appropriate sections of the textbook or other research to...
Do you think that there exists a free competitive market (as defined by neoclassical economics) in...
Do you think that there exists a free competitive market (as defined by neoclassical economics) in the real world? (i) If yes, provide an example of the free market and explain why this market is “free and competitive.” (ii) If no, what are the reasons we cannot have a free market in the real world?
provide an example of a wave or wave like motion Why do you think an understanding...
provide an example of a wave or wave like motion Why do you think an understanding of waves, wave motions, and sound are important?
, do you think international aid can be beneficial to human rights? If yes, provide one...
, do you think international aid can be beneficial to human rights? If yes, provide one example of how it could be beneficial; if not, provide one example.
Evidence-based practice (EBP) is an important topic in healthcare organizations. How do you think you could...
Evidence-based practice (EBP) is an important topic in healthcare organizations. How do you think you could apply EBP in your current nursing practice? Please provide examples.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT