Answer:
B. People do not like to act predictably, even with perfect information.
Explanation:
Rational choice theory states that people tend to make logical calculations when they are trying to make choices. This is aimed at making sure that choices made are in line with their objectives.
The expectation is to provide the individual with greatest satisfaction.
Therefore people choose the optimal solution and not just the acceptable one.
The individual's ability to conduct analysis can limit their rationality.
However the statement that people do not act rationally even with perfect information is in conflict with the rational choice theory
A general decrease in wages will result primarily in the aggregrate demand curve shifting to the shifting to the right.
<h3>What is the impact in the decrease in wages? </h3>
When there is a decrease in wages, it becomes cheaper to hire labor. As a result, there would be an increase in the demand for labor. This would shift the demand curve for labor to the right.
The decrease in wages, would shift the long run aggregrate supply curve to the left.
To learn more about the demand curve, please check: brainly.com/question/25140811
Answer:D) Rational, efficient, ideal organization based on principles of logic.
Explanation:Max Weber was a modern twentieth century Sociologist who proposed the Bereaucracy theory, according to Max Weber, Bereaucracy is the basis for the systematic formation of an organisation and Bereaucracy is designed to ensure efficiency and economic effectiveness is achieved. According to Max Weber, Bereaucracy is an ideal model for management and its administration to bring an organisation's power structure into focus when executing jobs or activities.
Like Max Weber, Tammy shares the same view that Bereaucracy is a Rational, efficient, ideal organization based on principles of logic.
Answer:
B; it offers an expected excess return of 1.8%
Explanation:
Here are the options :
A; it offers an expected excess return of .2%A; it offers an expected excess return of 2.2%B; it offers an expected excess return of 1.8%B; it offers an expected return of 2.4%
to determine which stock is the better buy, we have to calculate the expected return of the stocks using CAPM
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
Stock A = 5% + 1.2(9% - 5%) = 9.8%
Stock B = 5% + 1.8(9% - 5%) = 12.20%
The next step is to determine the excess return
stated expected return - calculated expected return = excess return
Stock A's excess return = 10% - 9.8% - 0.2%
Stock B's excess return = 14 - 12.20 = 1.8%
Security B would be considered because it has a higher excess return
Answer:
Easy money is a representation of how the Fed can stimulate the economy using monetary policy. The Fed looks to create easy money when it wants to lower unemployment and boost economic growth, but a major side effect of doing so is inflation.
Explanation:
