Answer:
Stocks and Bonds
Yes. It is a rational behavior for individuals with a long-term investment horizon to choose to invest in bonds rather than investing in stocks despite the overwhelming "evidence that suggests that over long periods of time stocks still outperform bonds."
Rational behavior involves making rational choices that provide optimal levels of benefit or utility for the individual. People who make rational choices would rather choose bonds with lower risks and returns than stocks with higher risks and returns.
Explanation:
Every rational investor would prefer to reduce her risk exposure instead of increasing it. Every investor is also aware that investments with higher risks attract higher returns. However, determining the certainty of the returns is difficult.
Answer:
$450 per ton.
Explanation:
The government has allowed to pollute 1600 ton of emission. The business has secured license from the government to run its business activities and drain the polluted waste in the sea. The total pollution allowed is 1600 tons and the cost of securing the license is $720,000. The cost per ton of emission would be $450.
Answer:
2
Explanation:
According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
If the price of the ticket is reduced, the quantity demanded would increase
If on the other hand, prices are increased, the quantity demanded would reduce.
Answer:
Cross-functional team.
Explanation:
A cross-functional team is a group of people with different functional expertise working toward a common goal. It may include people from finance, marketing, operations, and human resources departments. Typically, it includes employees from all levels of an organization.
Answer:
Consider the calculations below
Explanation:
(1) Nominal GDP, year 2 ($) = Sum of (Year 2 price x Year 2 quantity)
= 125 x 1.5 + 825 x 90
= 187.5 + 74,250
= 74,437.50
(2) Real GDP, year 2 ($) = Sum of (Year 1 price x Year 2 quantity)
= 1 x 125 + 45 x 825
= 125 + 37,125
= 37,250.00
