<span>9.20 percent
Re= 0.036 +1.2(0.085) = 0.138
Re= [($1.10 x 1.02)$19] +.02 = 0.0790526
ReAverage = (0.138 + 0.0790526)/2 = 0.108526
WACC = (1/1.65)(0.108526) + (0.65/1.65)(0.098)(1-0.32) = 9.20 percent</span>
Answer:
The correct answer is A) Lend support to the invisible hand by maintaining property rights and political stability
.
Explanation:
The absence of the government in legislative tasks related to the market is, therefore, one of the main bases of the economic theory developed by Adam Smith throughout his bibliographical work. For Smith, the leaders must deal with other areas of control more focused on defense or justice, leaving the market to its free operation.
The invisible hand presupposes that there is an inertia by which the market and its self-regulation leads individuals to make the best decisions for the majority of the population to achieve well-being. In other words, it is a kind of automatic control mechanism that compensates the actions taken as a whole, regulating social conformations.
Therefore, it is assumed that the self-regulation facilitated to the markets helps to achieve an optimal market. To do this, individuals must behave in such a way that they can act without state mediation and in pursuit of their own interest.
The metaphor of the invisible hand also supposes that individuals are encouraged or held back to produce or not to follow the level of prices that exist in the market. Prices and profits are sufficient indicative to know when to participate in the market or not. Basically, if there is profit in a market niche, this supposes a stimulus for production, while losses lead individuals to quit.
Answer:
Labor
Explanation:
Factor of production: There are several resources that are required in the process of production or running any business to meet the required goal of the business.
There are four factor of production:
- Land
- Labor
- Capital.
- Entrepreneurship.
In the given case, Matt Newell is an Entrepreneur as he has started a new helicopter tour company, for which he acquired land and capital from the loan, however, he has not to manage labor for his business. Labor is essential to run any business.
Answer:
The correct answer is letter "A": total value from trade in a market.
Explanation:
Canadian economist Alex Tabarrok (born in 1966) explains social surplus as the sum of consumer surplus, producer surplus, and bystanders surplus. Tabarrok takes an integrative approach in consumer surplus by stating <em>social surplus encompasses every economic trade in the market rather than only consumers and producers surplus.</em>
<em />
Besides, Tabarrok believes when there are major external costs or benefits, the market will not reach its social surplus.
Answer:
c
Explanation:
A stale green light is light that is about to turn yellow because it has been green for a while
Cover brake involves taking ones foot off the accelerator and hovering it over the brake pedal.
Cover brake is necessary when there is a stale green light in case there is a need to stop suddenly or reduce speed
