Answer: Options (A), (C) and (D) are correct
Explanation:
Yield to maturity ,is referred to as or known as theoretical IRR or internal rate of return that is earned by a person or investor who tends to buy that bond at the respective market price, also assuming the bond is enclosed till maturity, and further knowing that coupon and other principal payments are to be made on the schedule. YTM is referred to as or known as discount rate on which sum of future cash flow tends to be equal to current price of bond.
Answer:
people are Rational
Explanation:
Suppose the U.S. government encouraged consumers to trade in their old automobiles for more efficient, new models by paying up to $5,000 for the old automobiles. These consumers who did trade in their old automobiles to take advantage of the government offer would be exemplifying the economic idea that they are rational.
Rationality refers to Purposeful Behavior which means that individuals behave/make choices/decisions that will maximize their satisfaction, pleasure or utility.
Being rational in economics means that people will weigh the cost and benefits before deciding in favor of higher benefits. Hence in the scenario people will love to change an old car for a new one and still get $5000.
If the going rate of interest were 10 percent and the expected profit rate were 18 percent, then the opportunity cost of a firm carrying out a $100,000 project for one year with its own funds would be$10,000.
SO
$100,000/10 =$10,000
Opportunity cost is the advantage that was lost because a particular option was not selected.
It is necessary to weigh the advantages and disadvantages of each choice offered in order to correctly assess opportunity costs.
Opportunity costs have a value that can help people and businesses make more lucrative decisions.
Opportunity cost is a wholly internal expense that is only utilized for strategic consideration; it is not included in accounting profit and is not reported externally.
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<u>Answer: </u>Option D
<u>Explanation:</u>
When the government tries to reduce the production or consumption of certain goods taxes can help the government to perform this action. Taxes alter the resource allocation by giving disincentives for production, consumption or exchange of these goods. Consumer decisions on savings and retirements can be controlled through taxes. Through affecting their decisions, their behavior to take actions based on the decision can also be changed.
By keeping a check on the incentives of the people through taxes the demand and supply can be decreased. This further decreases the productivity of the country.
