higher prices 2 Find information about the What does the tulpomania have to do w

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higher prices 2 Find information about the What does the tulpomania have to do with modem buniness?Hint you wight find and describe an csample of a speculative bubble that occured within the last 20 yean 4 Mackay gives a list of items bstarting with "Two lasts of wheat 448 florins) that were traded for one bulp root He couid have left out his t and simply said that the root cost 2500 florins What is the purpose of the is 5. Why wouild Marco Polo compare the production of paper money to akchemy 6. Why would someone in Kaan's empire "readiy accegt a plece of paper as payment for a good? Hint: It's the same ceason that you accept pleces off paper as payment today 7. How was paper money heliphul to business in Kaan's Empire as described by Marco Pol? t. At the beginning of 2017, the U.S federal debt was approximately $20 trillion Why don't we take a lesson from the Kaan and print $20 trillion worth of dollar bills to pay that debe . Review the three functions of money Isted in the Introduction to the Radford reading Did ciganettes serve each of these functions for prisoners of war? Address all three functions in your anwer 10 In what ways could prisoners of war eam a profe? What woulid motivate a prihoner to want profe 11 Thinking about what haopened in prisoner of wrcamps, as well as the readings from previous modules, do you think that money, businesses and economies are things that inevitably arise from human nature? In other words must business be part of any human solety 12 To whut extent id the Introduction of money and business to prisoner of war camps lead to the formation of social 13. Acconding to Radford, when Canadian butter stopped coming, the price of German margarine went up. Wihywould be true? 14 What point is O. Henry trying to make in "The Romance of a Busy Broker 15. Do you agree with O Henry's point? Explain 16 The works of Mackay, Polo, and Radfond ane non-fiction, but essentially nt stories Assess the oredibility of each of

Explanation / Answer

Ans.1

That was a golden time for Dutch, the economy was booming which created a desire to spend more money. About the tulip, they realized that there is a uniqueness for each type of bulb which means each type of bulb could be call genetically unique. This created euphoria among buyers because there was a sense of rarity and value about tulip bulb. To fuel the liquidity future contracts were created that give a right to the buyer to bulb after they bloomed in springs. The future contract could be used as a financial instrument and traded for cash. This resulted in fake demand in which a seller could find a buyer and only fantasies about the contracts which means most buyers in the end only doing simply to make a profit rather for the bulbs. The number of rich merchants was increasing, they would buy a future contract recognizing rarity and uniqueness factor and perceived as more valuable after that merchants could sell it further to next buyer Hence the contracts would change multiple hands and give birth to speculation. In the end, this resulted in a price bubble.

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