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snow_lady [41]
1 year ago
12

Explain the basic assumption of economics with respect to rational self-interest. Describe two detailed real-life examples apply

ing the assumption.
Business
1 answer:
Roman55 [17]1 year ago
7 0

When making economic decisions, economists make assumptions in order to better understand how consumers' and businesses' behaviour.

To assist explain how an economy works and how to maximise growth, income, and employment, there are numerous economic theories.

However, preferences—that is, what companies and customers like to have or prefer to avoid—are central to many ideas. Additionally, the assumptions frequently concern the resources that are or are not readily available to meet the demands and preferences. The decisions that individuals involved in an economy make are significantly influenced by the availability or scarcity of resources.

Learn the rationale behind economists' assumptions and how they affect economic models.

When making economic decisions, economists make assumptions in order to better understand how consumers' and businesses' or  economic behaviour.

Economists They use assumptions in order to build a model that they can control because they are unable to isolate certain factors in the real world.

Learn more about economic behaviour hear :

brainly.com/question/15073240

#SPJ9

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Tanner, Inc. incurred a financial and taxable loss for 2018. Tanner therefore decided to use the carryback provisions as it had
inessss [21]

Answer:

The refund claimed should be shown as a benefit due to loss carryback in 2018.

Explanation:

Since Tanner, Inc. incurred a financial and taxable loss for 2018. and decided to use the carryback provisions as it had been profitable up to this year, the amounts related to the carryback should be reported in the 2018 financial statements as a benefit due.

Tax loss carryback is when a corporation <u>retrospectively adjusts its tax returns for prior periods</u> if it incurs a net operating loss (NOL) in current period.

The loss carryback <u>generates a tax refund</u> for the business because it reduces previous year tax liability. After the carried back loss is applied, it will be <u>as though the business overpaid taxes the previous year; which will now be shown as a benefit in the current year</u>

4 0
2 years ago
An important feature of a job order cost system is that each job:_______.
sammy [17]

Answer:

D

Explanation:

it has it's own distinguishing characteristics ....Form used to record the cost chargeable to a specific job and to determine the total and unit cost of the completed job

6 0
3 years ago
You purchased shares of stock one year ago at a price of $62.37 per share. During the year, you received dividend payments of $1
andreyandreev [35.5K]

Answer:

real rate of return= 10.93%

Explanation:

The return on equity is the sum of the dividends earned and capital gains made during the holding period of the investment.

Dividend is the proportion of the profit made by a company which is paid to shareholders.  

Capital gains is another type of the return made on an equity investment as a result of increase in the value of the shares. It is difference between the cost of the share and the value at the time of disposal.

Therefore, we can can compute the return on the investment as follows:

Capital gain =  $69.49- 62.37 = 6.92

Dividend -= 1.77

Nominal return on stock= (1.77 + 6.92)/ 62.37 × 100 =  13.93 %

Inflation is the increase in the price level.It erodes the value of money.rise in the price of money  

Nominal interest is that quoted for investment or loan transactions. It has not been been adjusted for inflation.  

Real interest rate is the amount of interest in terms of the the quantity of good and services that can be purchased. It is the nominal interest rate adjusted for inflation.  

The relationship between inflation, real return and nominal return rate is given using the Fishers Effect;  

N = ( (1+R) × (1+F)) - 1  

N- nominal rate, R-real rate, F- inflation  

real rate of return = (1.1393)/ (1.027)- 1 = 0.1093

real rate of return = 0.1093 × 100 = 10.93%

real rate of return= 10.93%

8 0
3 years ago
The finance function of business includes all activities that involve money. <br> t or f
ioda
This is true. :)
Hope this helps.

*ps, I take business, just pm me. :)*
3 0
3 years ago
Read 2 more answers
What term describes work done by nonprofessionals?
Romashka [77]

What sets a professional work and nonprofessional work is the kind of education and experience that the maker has. Professional work usually entails work done with those who have licenses and proper education background. Meanwhile, these forms of art are work done by nonprofessionals who has not undergone extensive education rather they got these skills by pure experience. Folk art, Naïve art, Intuitive art, and Outsider art are done by nonprofessionals.

<span>Therefore the answer to this question is<span> “All of these answers are correct”.</span></span>

3 0
3 years ago
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