operations management focuses on . multiple choice question. the study of human behavior in workplaces scientific research for developing theories about human behavior that can be used to provide practical tools for managers managing the production and delivery of an organization's products or services more effectively using mathematics to aid in problem-solving and decision-making

Answers

Answer 1

Operations management focuses on managing the production and delivery of an organization's products or services.

Hence, Option C is correct.

What do you mean by operations management?

The entire operational system of an organization is under the control of operations management. Organizations need effective operations management to run their daily operations. All processes are under the control of operations management, which also deals with system design, operation, maintenance, and improvement issues.Operations and production efficiency, quality management, inventory management, and supply chain management are a few examples of operations management types. Operational efficiency gauges a business's profitability depending on how well it runs. The lean production example.

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Related Questions

When is the second trimester?

Question 30 options:

weeks 1-12


weeks 13-28


weeks 29-40 (or birth if after 40 weeks)


weeks 40-birth (if baby is overdue)

Answers

The second trimester of pregnancy is option B: weeks 13-28

What weeks does 2nd trimester start?

In the second trimester, you usually start to see your bump. Your body will begin displaying the development of your unborn child between 16 and 20 weeks. It's possible for some women's bumps to go undetected until the third trimester or even the end of the second trimester. In the fourth month of pregnancy, the second trimester begins.

Many of the unfavorable consequences of early pregnancy vanish during the second trimester of pregnancy, which is sometimes referred to as the "golden period." You're likely to have less nausea, more restful sleep, and more energy throughout the second trimester.

Therefore, one can say that the first trimester of a pregnancy lasts from week one to week twelve, and there are three trimesters total. From week 13 until week 26's conclusion, the second trimester is referred to.

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Which of the following is not a non-tariff barrier?
a. voluntary export restraint
b. health and product standards
c. enviromental protection law
d. ad-valorem duties

Answers

The one that is not a non-tariff barrier is option D. ad-valorem duties

What is a tariff barriers?

Tariff barriers refers to a barrier to trade between particular countries or specific areas involving nations which occurs in the form of abnormally excessive taxes levied by a government on imports or occasionally exports for purposes of protection, support of the balance of payments, or the raising of revenue.

Tariff barriers is also considered to be several tariffs or duties imposed on foreign trade transactions to impose trade restrictions. From the available options, ad-valorem duty is tariff barrier, while the others are non-tariff barriers to trade.

Ad-valorem duty is imposed on import goods as percentage of the total value of goods imported.

Therefore, the correct answer is as given above

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businesses develop intranets so that valued customers have access to internal information that is not available to the general public. group of answer choices true false

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The given statement ''businesses develop intranets so that valued customers have access to internal information that is not available to the general public'' is false.

What is intranets used for?An intranet is a computer network used within a company for information exchange, improved communication, collaboration tools, operational systems, and other computing services, typically with restricted access for outsiders.Employees mostly utilise intranets for information search, internal communication, and workflow management. A website that is only used by an airline business to provide updates and information to its staff is an example of an intranet.A secret, internal corporate network called an intranet allows your staff to communicate more effectively, share information, and collaborate. Your company may interact and work together more efficiently with chosen suppliers, customers, and business partners thanks to an extranet.

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if a taxpayer fills out their w-4 in a way that does not withhold enough money to cover their tax obligation, what is the most likely outcome after they file their taxes?

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If a taxpayer fills out their W-4 in a way that does not withhold enough money to cover their tax obligation, they may end up owing money when they file their taxes.

What is a taxpayer?

Generally, This can happen if the taxpayer did not have enough tax withheld from their paychecks during the year or if they received additional income that was not subject to withholding, such as self-employment income or income from renting out a property.

If taxpayer owes money when they file their taxes, they will need to pay the amount due by the tax filing deadline, which is typically April 15th of the following year. If the taxpayer is unable to pay the full amount due, they may be able to set up a payment plan with the IRS to pay the balance over time. However, interest and penalties may accrue on the unpaid balance.

It is important for taxpayers to make sure that they are having enough tax withheld from their paychecks throughout the year. This can help to avoid the possibility of owing money when they file their taxes and can also help to avoid underpayment penalties.

Taxpayers can use the IRS's Withholding Calculator to help determine the appropriate amount of tax to have withheld from their paychecks.

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kunio puts $2,200.00 into savings bonds that pay a simple interest rate of 2.4%. how much money will the bonds be worth at the end of 4 years?

Answers

The bond will reportedly be worth $2411.2 after 4 years, according to the question.

How do bonds work?

Governments and corporations issue bonds when they require to raise money. You are effectively borrowing the issuer money when you buy a bond. In return, they promise to pay periodic interest payments—typically twice a year—along the way as well as to reimburse you the full amount of the loan on the specified date.

Briefing-

Kunio puts $2200.00 into savings bonds means

P= 2200

pay a simple interest rate of 2.4% means

r= 2.4

t= 4

Formula for Simple interest =P*t*r/100

Simple interest (2200×2.4×4)/100

Simple interest= $211.2

So, A= P+ Simple interest

A= 2200+211.2= 2411.2

Hence bond will be worth $2411.2

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midyear on july 31st, the andrews corporation's balance sheet reported: total liabilities of $186.494 million cash of $8.040 million total assets of $219.513 million total common stock of $5.080 million. what were the andrews corporation's retained earnings?

Answers

Andrew Corporation's retained earnings at midyear July 31st, given the assets and common stock, can be found to be $ 35. 979 million

How to find the retained earnings ?

The retained earnings can be found in the extended Accounting equation which is :

Assets = Total liabilities + Common stock and Equity + Retained earnings

Given this formula , the retained earnings for Andrew Corporation is therefore :

Retained earnings  =  Assets - Total liabilities - Common stock and Equity

= 219.513 + 8. 040 - 186. 494 - 5. 080

= $ 35. 979 million

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corporate financial managers use interest rate futures to treduce the risk of loss from a change in interest rates true of false

Answers

Interest rate futures are a tool used by business finance managers to lower the risk of losing money when interest rates change. This assertion is accurate.

How might management lower the risk associated with interest rates?

By purchasing bonds with varying durations, as well as by hedging fixed-income investments using interest rate swaps, options, or other interest rate derivatives, interest rate risk can be mitigated.

What are interest rate futures used for?

Interest rate futures are used to hedge bond portfolios or interest rates as well as for speculative purposes. Interest rate futures can be used by hedgers to lessen the impact of a negative movement in bond prices and rates as well as by speculators to wager on the direction of rate movements.

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mystic laboratories reported total assets of $10,500,000 and noncurrent assets of $2,167,000. the company also reported a current ratio of 1.3. what amount of current liabilities did the company report?

Answers

Current Liabilites = $2,777,667

What is Liability?

A liability is a debt that a person or business has, typically in the form of money. Through the transmission of economic advantages like money, products, or services, liabilities are eventually satisfied.

Total assets of $10,500,000

Less: Noncurrent assets $2,167,000

Current Assets = $8,333,000

Current ratio of 1.3 = Current Assets / Current Liablities

Current Liabilites = 8,333,000 / 1.3

= $2,777,667

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reliability refers to a. restoration of the product once it has failed. b. maintenance, repair, or replacement of the product once it has failed. c. the length of time a product can be used before it fails. d. the ratio between uptime and uptime plus downtime.

Answers

Reliability refers to The length of time a product can be used before it fails.

Hence, Option C is correct.

Reliability in statistics and psychometrics refers to a measure's general consistency. If a measurement consistently yields similar results, it is said to be very reliable. Reliability in data analysis refers to how simple it is to reproduce a result. For instance, a result is dependable if it is obtained after measuring a cup of rice three times and yielding consistent results each time.A measure's reliability is its constancy. Internal consistency, consistency among things, and consistency across different researchers are the three types of consistency that psychologists take into account (inter-rater reliability).

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Pro forma financial statements are prepared at the end of the year and are used to evaluate the performance of managers.

a. True
b. False

Answers

False.  A pro forma financial statement uses fictitious information or assumptions about potential values to forecast performance over a future period.

What is a pro forma statement used for?A pro forma financial statement uses hypothetical information or assumptions about potential values to forecast performance over a future period. Pro forma financial statements are defined as "financial statements predicted for future periods" in the Financial Accounting online course.Before a proposed transaction, such as an acquisition, merger, change in a company's capital structure, or new capital investment, accountants prepare financial statements using the pro forma approach. These are forecasting tools for the anticipated outcome of the proposed deal.

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lebleu, incorporated, is considering a project that will result in initial aftertax cash savings of $2.9 million at the end of the first year, and these savings will grow at a rate of 2 percent per year indefinitely. the firm has a target debt-equity ratio of .75, a cost of equity of 10 percent, and an aftertax cost of debt of 4.6 percent. the cost-saving proposal is somewhat riskier than the usual project the firm undertakes; management uses the subjective approach and applies an adjustment factor of +3 percent to the cost of capital for such risky projects. what is the maximum inital cost the company would be willing to pay for the project? (do not round intermediate calculations and and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.)

Answers

The maximum initial cost the company would be willing to pay for the project is $61.7 million.

Given information:

Information disclosed:

PV stands for present value.

The cash flow is CF.

The discount rate is r.

The growth rate is g.

13 percent is equal to 10% plus 3%.

Debt costs 4.6 percent of one's income.

The weight of debt is 0.75, and the weight of equity is 1 minus 0.75, or 0.25.

WACC = (weight of equity × cost of equity) + (weight of debt × cost of debt)

WACC = (0.25 × 13%) + (0.75 × 4.6%)

WACC = 3.25% + 3.45%

WACC = 6.7%

PV = CF / (r - g)

PV = $2.9 million / (6.7% - 2%)

PV = $2.9 million / 4.7%

PV = $61.7 million

Therefore, the maximum initial cost the company would be willing to pay for the project is $61.7 million.

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an activity ratio that measures how many times the inventory is turned over to meet the total sales figure is called the inventory turnover. a. true b. false

Answers

Inventory turnover True is an activity ratio that gauges how frequently inventory is changed to match overall sales volume.

What is the inventory turnover ratio quillet's formula?

Measures the frequency with which inventory is purchased, sold, or used over a time period; represented as: Cost of Goods Sold divided by Average Inventory equals Inventory Turnover.

What class of ratios gauges a company's capacity to fulfill its immediate obligations?

The ability of a company to satisfy its short-term financial obligations is revealed by liquidity ratios. They are especially valuable to those providing the company with short-term loans. The current ratio (also known as the working capital ratio) and the quick ratio are two commonly utilized liquidity ratios.

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karen says that she is a successful leader because when she tells her subordinates to do something, they do it because she's the boss. what source of power karen is using as a leader?

Answers

Servant leadership is source of power karen is using as a leader.

What do you mean by servant leadership?

A leader's main objective in a servant leadership style is to serve others. This differs from traditional leadership, in which the success of the firm or organization is the leader's top priority.A leadership style known as "servant leadership" is based on the idea that the best leaders work harder to serve others than to gain dominance or control. Customers, business partners, coworkers, and the general public can all be considered among the aforementioned others. Robert K., a management specialist, first used the phrase.

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what type of fund would typically be used to account for a municipal bus operation where users are charged a fee to ride the bus, and the fees collected are used to pay for the daily operation?

Answers

The type of fund typically used by a municipal bus operation where users pay a fee to operate the bus and the fees collected are used to pay for the day-to-day operation is a General Fund.

What is a General Fund?

A general fund is a primary fund used by a government agency. This fund is used to record all inflows and outflows of resources that are not related to special funds. The activities funded by the general fund constitute the central administrative and operational tasks of the governing body. Since the majority of all resources go through the general fund, it is vital to keep its expenses in check.

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Which of the following would constitute other areas of specialization in real estate brokerage, other than residential sales?
A) commercial property sales B) industrial property sales C) Vacant land and lot sales D) all of these

Answers

What will constitute areas of specialization in real estate brokerage, other than residential sales are:

commercial property salesindustrial property salesVacant land and lot sales

The Option D is correct.

What does real estate brokerage mean?

To begin a home purchase or sale, buyers and sellers require a common platform. The same is true for landlords and tenants looking to rent out their properties. The real estate brokerage industry arose to serve as that common platform for all of the parties mentioned above. Traditionally, individual realtors or agents assisted buyers and sellers (or landlords and tenants) in contacting one another.

Later, as the housing market began to experience unprecedented growth following economic liberalisation in the 1990s, the business saw the emergence of mega brokerage firms. Today, there are many real estate brokerage firms that cater to the needs of buyers and sellers in various residential and rental properties.

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acorn corporation is considering a project with an initial cash outlay of​ $50,000 and expected​ after-tax inflows of​ $20,000, $40,000 and​ $6,000 over the​ three-year life of the​ project, respectively. is​ 13% the irr of this​ project?

Answers

IRR is $5313.28,IRR is helpful in instances where it is challenging to calculate a discount rate or when evaluating several projects side by side.

IRR is sometimes preferred over NPV, when?

IRR is helpful in instances where it is challenging to calculate a discount rate or when evaluating several projects side by side. When there are several discount rates or different future cash flow directions, the NPV is preferable.

IRR can be calculated manually by following these steps: Identify two potential discount rates. Pick two discount rates that you'll employ before you start your calculations. Be sure to figure out the net present values. Using the two values you choose in step one, figure out the net present values based on each estimation. Make an IRR calculation.

Top response, we calculate IRR at NPV=0 as 20000/1.13 + 40000/1.13 + 6000/1.13 = $5313.28.

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last year, fullerton enterprises had average inventories (raw materials, work-in-process, and finished goods) of $7.5 million. during this same year, the cost of goods sold was $30 million. the company operates 50 weeks per year. what is their inventory turnover? turns (enter your response rounded to two decimal places.)

Answers

The $30 million cost of products sold. The business is open 50 weeks a year. The turnover of their inventory is 12.50.

What does the term "turnover" mean?

Accounting's idea of turnover demonstrates how quickly a corporation does business. The bills receivable and inventories ratios are the two most used approaches to determining an industry's turnover. The amount of a portfolio sold in a particular month or year is known as turnover in the investment world.

How is turnover rate determined?

The quantity of terminations within a given period is divided by the initial employee count to determine the turnover rate. If we have 250 people at the beginning of the year and 10 of them leave their jobs during that time, our turnover rate is 10/200, or 0.05.

Briefing:

Inventory turnover rate = cost of items sold / ( average inventory )

=(30)/(7.5)

=4.00

Weeks on hand = (week of operation)/ (inventory turnover rate)

=(50) / (4)

=12.50

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what can the fed do with each of its three primary tools to implement expansionary monetary policy during a recession

Answers

The Fed's three main initiatives to boost the economy are a lower discount rate, the purchase of government assets, and a lower reserve ratio. Another weapon for monetary policy that central banks employ is quantitative easing.

What three tools does the Fed have at its disposal to carry out monetary policy?

The Federal Reserve's "administered rates"—interest on reserve balances, the Overnight Reverse Repurchase Agreement Facility, and the discount rate—are the main instruments of monetary policy. To make sure that these rates are efficient, a further technique known as open market operations is required.

What forms of expansionary policy does the Fed employ?

Reduced reserve requirements for banks, increased purchases of government assets, and lower interest rates are the three tools the Federal Reserve uses to conduct an expansionary monetary policy. The goal of expansionary monetary policy is to make it simpler for people and businesses to borrow money and spend it, both of which help to stimulate the economy.

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which of the following is not an argument made by critics of advertising? a. advertising impedes competition. b. advertising manipulates people's tastes. c. advertising increases the perception of product differentiation. d. advertising promotes economies of scale.

Answers

The effective use of these strategies depends on the recipient's state of mind, the position of the brand in the market, the type of information available, and the advertising context.

What are the arguments for advertising?The five main categories of arguments are framing, rhetorical, innoculative, comparison, and supportive. These tactics' efficacy depends on the recipient's mindset, the brand's position in the market, the sort of information accessible, and the advertising context.Many people criticise advertising because it frequently persuades individuals to buy things they don't need and makes deceptive claims about products.An advertisement critique essay's goal is to study and evaluate a certain advertisement. Because they need to have an introduction, multiple body paragraphs, and a conclusion, advertisement critique essays are relatively comparable to other types of essays.

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to manufacture 1,000 pairs of shoes in a week, a firm can use 1,500 workers and 50 machines or 100 machines and 2,000 workers. which method is more technically efficient?

Answers

Therefore, a company may produce 1000 pairs of shoes in a week with 1500 workers and 50 machines, which is a more technically effective approach than using 2000 workers and 100 equipment.

What is called workers?

A person, animal, or object that works; particularly, one who is hired to perform physical or mental labour for pay, especially in order to make a livelihood, as in a trade, industry, business, office, etc. or on a farm, ranch, etc. An individual who works for a cause, group, etc. The middle class includes people who earn salaries as lawyers, librarians, high school teachers, and other professions. The working class includes people who work as miners, gardeners, or window washers. Workers are sterile, sexually immature individuals of an ant, bee, wasp, or termite colony.

What is the role of workers?

Following workplace plans of action to handle and deal with any potential workplace danger, including workplace violence, is the responsibility of employees. Take advantage of the training opportunities provided by the company, such as training on preventing workplace violence. Employees are crucial because, among other things, they fulfil your objective and have sway over your customers. They complete your assignment. The fact that employees are directly accountable for completing your objective is one of the main reasons why they are crucial to an organization's success.

Briefing:

1. For 1500 workers 50 machines

Worker technical efficiency = 1500/1000

Worker technical efficiency = 1.5%

Machine technical efficiency = 50/1000

Machine technical efficiency = 0.05%

Average technical efficiency = (1.5%+0.05%)/2

Average technical efficiency = 1.525%

2. For 2000 workers 100 machines

Worker technical efficiency = 2000/1000

Worker technical efficiency = 2%

Machine technical efficiency = 100/1000

Machine technical efficiency = 0.1%

Average technical efficiency = (2%+0.1%)/2

Average technical efficiency = 1.05%

It is technically more effective to have 1500 employees and 50 machines because the average technical efficiency of 1.525% is higher than 1.05%.

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a car is purchased for . after each year, the resale value decreases by . what will the resale value be after years? use the calculator provided and round your answer to the nearest dollar.

Answers

A car is purchased for . after each year, the resale value decreases by, 24,000 in lost value making the car's value zero .

If it lost 20% of its value in the first year, it would have lost 100% of its value by the fifth year, making it worthless.

In the first year, 20/100*24000 equals $4,800.

The value will be after the first year.

Consequently, the value will be in five years.

4800*5= $24,000 in lost value making the car's value zero .

In an effort to shop more responsibly and find a new home for the things in their closet that they no longer want, consumers are turning more and more to secondhand and antique clothing, which has led to a huge rise in the demand of resale in recent years.

Your minor purchases from resale shops, such as a pair of jeans or a formal dress, have a significant influence on the environment. Buying used clothing enables you to carry on the memories of the deceased through your choices.

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The correct question is :

A car is purchased for $24,000 . After each year, the resale value decreases by 20% . What will the resale value be after 5 years? Use the calculator provided and round your answer to the nearest dollar.

What Is An Example Of Opportunity Cost In Your Life?

Answers

The idea of opportunity cost is presented in many situation in every day life. One example of this could be choosing to go to the movies with your friends instead of studying for a test that you have the next day. The opportunity cost is by choosing to go with your friends, you may lose valuable study time that could contribute to you getting a higher grade on the test.
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which closing best expresses a desire to satisfy the customer and signals confidence that the problem has been resolved?

Answers

By definition, buying signals are the actions potential customers take that indicate they're close to making a purchase.

What serves as signal for the buyer and sellers?Prices act as a signal to producers as well as consumers. Prices can help customers determine their willingness, ability, and ability to complete the purchase (demand), and they can help producers determine what to produce, how to produce, and for whom to produce. A "strong buy" indicates that the analyst thinks the underlying firm of the stock is currently enjoying or will shortly be experiencing positive financial performance and/or favourable market circumstances. The behaviours potential purchasers take that might suggest they're about to make a purchase choice are known as buying signals. Because they can help you focus on the most promising prospects, purchasing signals are particularly crucial for B2B sales and marketing teams because they can help you save time and close more deals.

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which of the following is an example of an automatic stabilizer? group of answer choices new environmental regulations increase the number of citizens out of work. social security taxes are raised. congress cuts taxes. economic growth increases budget surplus. congress increases the minimum wage.

Answers

The example of an automatic stabilizer is social security taxes are raised. congress cuts taxes.

Automatic stabilizers are functions of the tax and transfer structures that mood the financial system when it overheats and stimulate the economic system while it slumps, without direct intervention by way of policymakers. automatic stabilizers offset fluctuations in economic interest without direct intervention via policymakers.

Computerized stabilizers are a type of fiscal coverage, that's desired by way of Keynesian economics as a device to combat economic slumps and recessions.

The number one gain of the automatic stabilizers is: they require no new legislative movement, so there is no legislative lag before these gear reply to fluctuations in the commercial enterprise cycle.

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explain how a subsidy to producers can correct for a positive externality. a subsidy can correct for a positive externality because

Answers

A tax can correct for a negative externality, while a producer subsidy can correct for a positive externality. This is because the tax moves the expense to the businesses, reducing output while the subsidy boosts supply.

There are many different types of subsidies, such as direct (cash gifts, interest-free loans) and indirect (tax breaks, insurance, low-interest loans, accelerated depreciation, rent rebates). They can also be general or specific, legitimate or prohibited, and moral or immoral.Governments may offer cash, tax exemptions, or other forms of financial support to specific companies or economic sectors called subsidiesSubsidies are intended to support or sustain elements of a nation's infrastructure or economy that are seen as being crucial.

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consider the interaction between labor and capital within the production process and answer the following questions. how do economists refer to the amount of capital employed per worker?

Answers

Because workers would be more productive, wages would increase. The amount of capital used per worker is described by economists as the interaction between labor and capital during the production process.

Who is referred to as an economist?

An economist is someone who researches human decision-making processes and is enthusiastic about using statistics to increase revenue, improve governmental policies, or conduct research.

Do economists earn a good living?

According to the BLS, the average yearly compensation for an economist is $116,020, which is more than double the average yearly wage for all occupations, $51,960. However, depending on the state you're in, the typical economist income can vary greatly from this.

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donna is not planning on attending college after high school. what are schools doing that will result in donna not being prepared for the job market?

Answers

They are placing more emphasis on students who are headed for college and giving no vocational training to those who are not.

How does attending college affect future generations?

College students frequently demonstrate a greater interest in political, moral, and ethical issues as well as a more developed sense of self-identity, self-awareness, and self-worth (Berk, 2014).

They frequently exhibit an eagerness to learn and a learning orientation that is problem-centered. What causes a drop in substance use in a person's 30s? Young adults change into new family roles and become parents as a result.

Families are impacted by college because graduates have access to more jobs and income levels. Because of the demands of their coursework, students may not be able to work a lot while in college, but once they graduate, they may be qualified for employment that weren't previously open to them.

They are placing more emphasis on students who are headed for college and giving no vocational training to those who are not.

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before starting to promote products to other countries online, what would you use to gauge demand for your product in that specific market?

Answers

The correct option is B, before starting to promote products to other countries online, Keyword planning tools use to gauge demand for your product in that specific market.

A specific market is a subset of a larger market that has its own set of characteristics and needs. It is often defined by a specific segment of customers or a particular range of products or services. For example, the health and fitness market could be further broken down into the gym market, the nutrition market, the wellness market, and the sports market.

Each of these sub-markets has unique characteristics, such as different customer demographics, different needs and preferences, and different product or service offerings. Specific markets can also be defined by geographies, such as a local market or a global market. A specific market can be further divided into even smaller markets to further pinpoint customer needs and preferences. By understanding the specific needs of a particular market, companies can better target their products, services, and marketing campaigns to effectively reach and serve that segment of customers.

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Complete Question:

Before starting to promote products to other countries online, what could you use to gauge demand for your product in that specific market?

a. Translation software

b. Keyword planning tools

c. Interviews with people from that country

d. A range of search ads in different countries

andrea lost her job as an accountant because her company gave the contract for keeping accounts to a firm in asia. the company did so to reduce the costs, as it could find cheap labor in the asian countries. andrea lost her job due to which type of economic activity? a. recession b. inflation

Answers

Out of the choices provided above, it can be said that Andrea lost her job due to the economic activity of outsourcing. Therefore, the option C holds true.

Outsourcing can be referred to or considered as the process of making a contract with other firms to complete a task or a business department of an organization, so that the organization is able to focus on other important processes of business operations. It also helps in bringing specialization, thereby cutting the costs for the companies in the longer run.

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Complete question

Andrea lost her job as an accountant because her company gave the contract for keeping accounts to a firm in Asia. The company did so to reduce the costs, as it could find cheap labor in the Asian countries. Andrea lost her job due to which type of economic activity?

A. recession

B. inflation

C. outsourcing

D. depression

E. deflation

why might it be better to lean against credit-driven bubbles rather than just clean up after other types of asset bubbles burst?

Answers

Although there is less collateral damage when an asset bubble collapses than when a credit-driven bubble does, macroeconomic coverage failure occurs when a credit-driven bubble does in a financial system.

When a bubble bursts, the price decrease that follows causes unsustainable investment schemes, especially but not exclusively speculative and/or Ponzi investments, to fail. This consumer and investor confidence crisis could during a bubble, investors keep pushing an asset's price higher than.

Eventually, when prices fall and demand declines, the bubble "bursts." As a result, consumer and business expenditures are typically reduced, which may cause the economy to slow down.In light of the information provided.Compared to a credit-driven bubble, there is less collateral damage when an asset bubble explodes.

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