Answer:
The correct answer is normative analysis.
Explanation:
A positive analysis is the one that attempts to reflect reality with statements of cause and effect and is used mainly in microeconomics. On the other hand, a normative analysis, in which reality is prescribed, that is, we go beyond explanation and prediction, value judgments are used.
In contrast to the positive analysis, the normative analysis responds how the law should achieve efficiency objectives. This analysis assumes that efficiency is an objective that law should reflect and that legal norms should change when they fail. From this perspective, efficiency is a social value that the Law should promote.
Answer:
0.66
Explanation:
Marginal propensity to consume is the proportion of disposable income that is spent on consumption
Marginal propensity to consume = change in consumption / change in income = C / Y
Gross domestic product (Y) is the sum of all final goods and services produced in an economy within a given period which is usually a year.
In a closed economy, GDP = Consumption + Investment spending + Government Spending
Y = 300 + 0.75(Y - $1,200) + $900 + $1,300
Y = 300 + 0.75Y - $900 + $900 + $1,300
Collect like terms
Y - 0.75Y = $1600
0.25Y = $1600
Y = $6400
Substitute for Y in the consumption function : 300 + 0.75(Y - $1,200)
300 + 0.75($6400 - $1,200)
300 + 0.75($5,200) = $4,200
C = $4200
Marginal propensity to consume = $4,200 / $6400 = 0.66
Answer:
d. One defect of the IRR method versus the NPV is that the IRR does not take proper account of differences in the sizes of projects.
CORRECT As the project yields over time can differ. This generates that projects with a lower IRR can achieve a higher NPV at lower rates.
There is a crossover point after which a projects NPV are equal and from there the one with higher IRR obtains better NPV
Explanation:
a. One defect of the IRR method versus the NPV is that the IRR does not take account of the time value of money.
FALSE both method consider time value of money
b. One defect of the IRR method versus the NPV is that the IRR does not take account of the cost of capital
FALSE The IRR can be compared against the cost of capital to indicate wether or not a project should be preferable
.c. One defect of the IRR method versus the NPV is that the IRR values a dollar received today the same as a dollar that will not be received until sometime in the future.
FALSE IRR considers the time value of money
e. One defect of the IRR method versus the NPV is that the IRR does not take account of cash flows over a project's full life.
FALSE it considers all the cash flows over the project's full life.
Answer:
The correct response is "145,000
".
Explanation:
The given values are:
Purchased cost,
= $150,000
Expenses,
= $5,000
Selling cost,
= $10,000
Now,
Logan's basis for depreciation will be:
= 
On putting the values, we get
= 
= 
= 
($)
