Answer:
a.Payment for meals
Explanation:
Opportunity cost is referred to as the next best alternative.
Opportunity cost means the benefits foregone of the non chosen alternative when an alternative is chosen from the available set of options which includes the non chosen option.
For e.g storage of money at home has an opportunity cost in the form of loss of interest had the same money been invested elsewhere apart from assuming the risk of loss of theft.
In the given case, the opportunity cost of being a full time student at a university instead of working full time at a job includes the opportunity cost in the form of income from that full time job in addition to specific expenses incurred for being a full time student such as Payment for tuition, Payment for books.
Thus, payment for meals represents a common cost which would've been incurred anyway irrespective of whether one attends full time college or does a full time job.
Answer: The optimal capital structure maximizes the firm’s stock price.
Explanation:
The Capital Structure of a company refers to the proportion of debt vs equity that it chooses to use to fund its Assets and operations.
The goal of management is to use the capital structure to fund the company in such a way that the market value of a company increases.
The Market value is reflected by the firm's stock price so the optimal capital structure is meant to maximize the firm’s stock price.
Answer:
Keynesian economists might propose that government <em>reduces </em>taxes, which will cause the aggregate demand curve to shift to the <em>right </em>and Real GDP will <em>increases</em>.
Explanation:
Keynesian economics is demand-sided.
If the economy is producing at full capacity, increased demand will only cause inflation as goods and services cannot be increased although people are willing to pay more (real GDP the same)
However, if the economy is below capacity, the problem is that there is not enough demand to drive production (additional goods and services produced will not be bought). Keynesians would advocate reducing taxes to stimulate demand.
When taxes are reduced, goods become cheaper. People are willing to buy more at similar prices (that producers charge), causing the aggregate demand curve to shift to the <em>right. </em>As economy is below capacity, suppliers are able to responded by supplying more goods and services (supplier curve shift to the right) and Real output (GDP) would increase.
<span>When a person insured under a policy for some period of time,
the term which is used is life insurance. Insured person is allowed to convert
a term policy to permanent policy later at any date in convertible term policy.
The factor that affect C the most when she tried to convert term policy to
whole life insurance is the cost.</span>
Answer: Option D
Explanation: Economic cost is the total cost a firm bears in the form of expenses incurred and opportunity cost incurred. Opportunity cost can be defined as the loss of profit for choosing one alternative over other.
In the given case salary and interest on certificate of deposit is the opportunity cost for Ellie.
so,
Economic cost = $80,000 + $15000 + $3000 + $1000 + $1200 + $35,000 + $500
= $135,700
