Skip to content
Home » Economics for Accounting and Finance

Economics for Accounting and Finance

  • by

Economics for Accounting and Finance

Consider the case of robo-advisory, introduced by a bank as a substitute for the regular face-to-face service offered by its human advisors. However, the robo-advisory service can only cover some of the aspects that a human advisor can offer. Nonetheless, it is faster and the service can be used by the clients from their home instead of travelling to the bank.

  1. a)  Plot the indifference curve (IC) derived by the customer of the bank with regard to a combination of human-advisory and robo-advisory. Explain the reasons for the shape of the IC.[10 marks] Economics for Accounting and Finance
  1. b)  A technological improvement leads to a decrease of the price for robo-advisory. Show the effect of the reduction of the price using the IC and any relevant other curves.

[10 marks]

  1. c)  Suppose a technological innovation makes the robo-advisory completely comparable to the client experience and quality of service conducted by human advisors. Provide a graphical illustration of this case and explain the shape of the IC.[15 marks]


  1. a)  Caring for the environment is part of our obligation to the future generations. Why is it difficult to incorporate this environmental aspect in calculating GDP? Discuss the socio-economic implications as a result of this difficulty.[10 marks]
  1. b)  Critically analyse why the circular economy suggests small scale activities at local level.[10 marks]
  1. c)  Provide an example of green jobs versus traditional jobs and their related costs for the employer. Discuss the environment as a type of good and elaborate on the role of the Government with regard to the provision of this good.


error: Content is protected !!