The Assertion That If Resources Are Allocated Efficiently, They Also

question 72

Multiple Choice

The assertion that if resources are allocated efficiently, they also are allocated fairly is made by

• A) all economists who understand the big tradeoff.
• B) John Rawls, who proposed making the poorest as well off as possible.
• C) all utilitarians.
• D) Robert Nozick, who believes that equality of opportunity is fair.

Apply the concept of weighted average cost of capital (WACC) and understand its components and computation.

Understand how to calculate the weighted average cost of capital (WACC) and its components.

Grasp the impact of flotation costs on the cost of financing.

Learn the concepts of the marginal cost of capital (MCC) and the investment schedule breakpoint.

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Definitions:

Challenges

In a general context, challenges are obstacles or difficulties that need to be overcome, often requiring effort, skill, or strategy.

Flow

A mental state of deep involvement and immersion in an activity where an individual experiences focus, engagement, and a sense of satisfaction.

Effort

The use of physical or mental energy to achieve a goal or accomplish a task.

Personal Constructs

Cognitive structures individuals use to interpret and predict events, prominently featured in George Kelly’s personal construct theory.