The cost of capital is a combination of a firm's payments to the different sources of capital funding is called
A) the weighted average cost of capital.
B) the average cost of capital.
C) the discount rate.
D) the transfer price.
A
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Which of the following is NOT a problem in following an activist policy?
A) ineffectiveness in fiscal policy B) lags in the effects of policies C) multiplier uncertainty D) forecasting errors
The table below shows the number of labor hours required to produce one umbrella and one bushel of corn in the United Kingdom and the rest of the world. Which of the following statements is true? Labor hours to make:In the United KingdomIn the Rest of the World1 umbrella3.002.001 bushel of corn1.000.25
A. The United Kingdom has a comparative advantage in the production of corn. B. The United Kingdom has a comparative advantage in the production of umbrellas. C. The United Kingdom has a comparative advantage in the production of both goods. D. The United Kingdom has an absolute advantage in the production of umbrellas.