In Economics, Positive Statements Are About

question 522

Multiple Choice

In economics, positive statements are about

• A) the way things ought to be.
• B) macroeconomics, not microeconomics.
• C) microeconomics, not macroeconomics.
• D) the way things are.

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Definitions:

WACC

Refers to the Weighted Average Cost of Capital, a method to determine a company's capital cost where each type of capital is weighted according to its proportion.

Project Risk

The potential for losses or negative outcomes on a project due to various factors such as cost overruns, underperformance, or market changes.

Equity Financing

A method of raising capital by selling company shares to investors, thereby offering them a portion of the ownership.

Weighted Average Cost

An inventory valuation method that calculates inventory and cost of goods sold based on the average cost of all similar items in inventory.