3. Classical economics assumes people are rational and logical while behavioral economics adds psychology to the mix.
A major theory in classical economics is that human beings are rational and, given the necessary information they will make rational decisions and act rationally, however, Behavioral economics assumes that people are irrational players.
11.55% is the weighted average cost of capital for these funds
Explanation:
Firm has 76000000 in debt and 100000000 in equity. Thus the proportion of debt =
= 76000000/(76000000 + 100000000)
= 43.18%
and proportion of equity = 1 - 43.18% = 56.82%
Therefore, WACC = 0.4318 * 6.1 + 0.5682 * 15.7
= 11.55%
Answer:
lost value compared to the German mark because inflation was lower in Germany
Explanation:
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
If inflation of the currency of a country increases relative to that of another country, the value of that currency decreases
Answer:
c. Economists devise theories, collect data, and analyze the data to test the theories
Explanation:
Economists use past data to predict the future.
They make use of sound economic theory instead of rule of thumb to predict the future.
I hope my answer helps you
Answer:
c. 37,000 units
Explanation:
Calculation to Determine the total equivalent units for direct materials, assuming that the first-in, first-out method is used to cost inventories
Using this formula
Total equivalent units for direct materials= Transferred to finished goods during the month of July + Ending work in process during the month of July - Inventory in process as on July 1
Let plug in the formula
Total equivalent units for direct materials= 37,500 units + 3,500 units - 4,000 units
Total equivalent units for direct materials= 41,000 units - 4,000 units
Total equivalent units for direct materials= 37,000 units
Therefore the total equivalent units for direct materials, assuming that the first-in, first-out method is used to cost inventories is 37,000 units
