Which of the Following Is a Positive Statement

question 157

Multiple Choice

Which of the following is a positive statement?

• A) The United States should fight inflation even if it raises unemployment.
• B) What to do with Social Security is the most important economic issue today.
• C) A 5 percent increase in income leads to a 3 percent increase in the consumption of orange juice.
• D) Because they decrease productivity, labor unions should be eliminated.

Analyze the implications of financial decisions on a firm’s risk and return profile.

Understand the process and rationale behind selecting discount rates for evaluating investment opportunities.

Understand the concept of flotation costs and how they impact financial decisions.

Comprehend the definitions and differences between pure play and subjective approaches to calculating the Weighted Average Cost of Capital (WACC).

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Definitions:

Technology

Application of scientific information to solve or address a need of humans.

Species

A group of living organisms consisting of similar individuals capable of exchanging genes or interbreeding.

Populations

Groups of individuals of the same species living and interbreeding within a given area.

Area

is a measure of the extent of a two-dimensional surface or shape, expressed in square units.