Answer:
A. Lower prices can benefit the general economy.
Answer:
Option A: is the expected rate of return on a capital investment.
Explanation:
A capital is usually the money used to start up any business.
Cost of capital is simply cost of company's long-term sources of funds: debt, preferred equity and others. It shows how the market views the risk of the firm's assets. A firm must earn required return to compensate investors for the financing the business.
Answer:
True
Explanation:
It is True because net income is shown in the Balance sheet as a credit account as it increases the revenues and as a debit column in the Income Statement of the end-of-period spreadsheet.
This entry is reversed for the net loss. It would be shown as a debit column in the Balance Sheet ( indicating an expense/ a loss) and as a credit column in the income statement.
The net income is shown as a debit column in the Income Statement of the end-of-period spreadsheet indicating that the credits ( revenues) are more than the debits ( expenses) and we get the balance of the income after deducting the expenses from the revenues. It is entered above the debit totals.
Answer: This is the type of cost known as Sunk.
- sunk cost is a cost that has already been incurred and cannot be recovered. Sunk costs are contrasted with prospective costs, which are future costs that may be avoided if action is taken.
- A sunk cost refers to money that has already been spent and which cannot be recovered. ... Sunk costs are excluded from future business decisions because the cost will remain the same regardless of the outcome of a decision.
- The sunk cost effect is manifested in a greater tendency to continue an endeavor once an investment in money, effort, or time has been made. Evidence that the psychological justification for this behavior is predicated on the desire not to appear wasteful is presented.
Answer:
The correct option is B
Explanation:
As Joe has health insurance, now he is engaged in the activities which are more risky because he knows that if he gets hurt then the health insurance will cover it. So, this economic problem in the story will be referred to as the moral hazard because it is a hazard when one party can take the risks knowing that the other party will bear the outcome.
