Why Do Economists Use Assumptions

question 64

Multiple Choice

Why do economists use assumptions?  

• A) to diminish the chance of wrong answers 
• B) to make the world easier to understand 
• C) because all scientists make assumptions 
• D) to make certain that all necessary variables are included

Understand the physical and emotional changes that occur during puberty.

Identify the impacts of puberty on adolescent behavior and mental health.

Recognize the role of environmental and genetic factors in the timing of puberty.

Describe the contemporary views on adolescence and the concept of storm and stress.

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Definitions:

Capital Component

One of three sources of capital: debt, preferred stock, or equity.

Required By Investors

Refers to the expectations or conditions that investors demand before committing capital to an investment.

Capital Structure

The combination of borrowing and ownership investments utilized by a company to finance its activities and expansion.

WACC

A method known as the Weighted Average Cost of Capital (WACC) is used to calculate a corporation's cost of capital, with every capital category assigned a proportional weight.