What is the theory of cost-benefit analysis?
Cost-benefit analysis is a methodology that is used to compare the costs and benefits of a government policy or action from the perspective of society as a whole. Nevertheless, a fundamental issue regarding cost-benefit analysis is that it aggregates the utilities (as measured by willingness to pay) of individuals.
Which best describes the kinds of decisions that result from using cost-benefit analysis?
Explanation: using cost-benefit analysis is a strategic way of making decisions based on cost and benefit solely. The answer is an outcome with benefits that are greater than the cost.
Why do economists consider cost and benefits?
Economists absolutely recognize that not all benefits or costs can be measured monetarily. Economists enjoy pointing out both what can’t be measured with money and also finding clever ways to measure or estimate the monetary value of what can contribute to understanding the costs and benefits of a decision.
Which is one of the benefits e commerce brings to consumers quizlet?
Which is one of the benefits e-commerce brings to consumers? Shipping gifts is easy.
Which is one of the benefits e-commerce brings to consumers?
Simplicity and comfort. Customers can buy any product from any e-commerce in the world without having to step foot from their workplace or home. E-commerce is convenient when buying goods or services without creating physical limitations for consumers.
Which of the following is an example of allocation decision?
An epic example of an Allocation Decision is “Coal is set aside to burn as heating fuel” . Explanation: Scarce Resources Utilization or Allocation Decision refers the judgment in order to make the better utility of scarce resources to enhance the net income in a business or capital.
Why are goals necessary for making allocation decisions?
Allocation of resources gives a person an idea on how he/she will distribute the products for its intended purpose. In order to do this, he needs to have an allocation decision, which should be backed by some goals. The goals give the person direction towards the allocation of resources.
Which economic indicator can show whether a country’s economy is growing or stagnating?
Different methods, such as Gross National Product (GNP) and Gross Domestic Product (GDP) can be employed to assess economic growth. Gross Domestic Product measures the value of goods and services produced by a nation.
Which is one way that land contributes to production?
Explanation : Environmental fuels can be produced from lands and contribute towards production. The land can contribute for the production of a Biogas plant and help in generating energy from the plant.
What are the four factors of production mention their rewards?
When factors are used they earn a reward called a factor ‘income’. Factor incomes are: rent, wages, interest and profit. In basic economic theory, the more scarce and essential the factor the greater the reward.
What is the most important factors of production?
Human capital is the most important factor of production because it puts together land, labour and physical Capital and produce an output either to use for self consumption or to sell in the market.
What are the factors of production and their rewards?
Factors of Production and their Rewards
| Type | Definition | Reward |
|---|---|---|
| Land Labour Capital Enterprise | All natural resources The physical and mental works of people All man made tools and machines All managers and organizers | Rent Salary/Wage Interest Profit/Loss |
What are the importance of factors of production?
The factors of production are land, labor, capital, and entrepreneurship, which are seamlessly interwoven together to create economic growth. Improved economic growth raises the standard of living by lowering production costs and increasing wages.
What are the features of capital?
Capital possesses the following main characteristics:
- Man Produces Capital:
- Capital is a Passive Factor of Production:
- Capital is a Produced Means of Production:
- Capital is Variable:
- Capital is more Mobile than other Factors of Production:
- Capital Depreciates:
- Capital is Stored-up Labour:
- Capital is Destructible:
What are the 4 types of capital?
The four major types of capital include working capital, debt, equity, and trading capital.
What are three types of capital?
Based on this research, it appears that there are three types of capital in addition to financial capital that families want to keep in mind. They are: Human Capital, Cultural Capital, and Social Capital.
What are the two main types of capital?
In business and economics, the two most common types of capital are financial and human.
What are the two types of capital Class 9?
The different types of capital are:
- Natural capital: these are the natural resources used in the production process.
- Human capital: it is the people knowledge skills that help in the process.
- Social capital: it is the group that helps in the maintenance of human capital like families.
What is capital market and its types?
There are broadly two types of financial markets in an economy – capital market and money market. Now capital market deals in financial instruments and commodities that are long-term securities. The funds will be used for productive purposes and create wealth in the economy in the long term. …
What are the types of share capital?
What are the Different Types of Share Capital?
- Authorized Share Capital. Authorized Share Capital is the total Capital that a company accepts from its investors by issuing shares which are mentioned in the official document of the company.
- Issued Share Capital.
- Subscribed Capital.
- Called-Up Capital.
- Paid-Up Capital.
Which is the one part of share capital?
As per section 43 (a) equity share capital may be divided on the basis of voting rights and differential rights(DVR) as to dividend, voting rights or otherwise according to the rules.
What are the types of share?
Most classes of share will fall into one of the below categories of types of share:
- 1 Ordinary shares.
- 2 Deferred ordinary shares.
- 3 Non-voting ordinary shares.
- 4 Redeemable shares.
- 5 Preference shares.
- 6 Cumulative preference shares.
- 7 Redeemable preference shares.
What are the types of preference share?
The four main types of preference shares are callable shares, convertible shares, cumulative shares, and participatory shares. Each type of preferred share has unique features that may benefit either the shareholder or the issuer.
What is preference share with example?
Preference shares, more commonly referred to as preferred stock, are shares of a company’s stock with dividends that are paid out to shareholders before common stock dividends are issued. Preferred stock shareholders also typically do not hold any voting rights, but common shareholders usually do.
What are the features of preference shares?
Features of preference shares:
- Dividends for preference shareholders.
- Preference shareholders have no right to vote in the annual general meeting of a company.
- These are a long-term source of finance.
- Dividend payable is generally higher than debenture interest.
- Right on assets when the company is liquidated.
What is preference share in simple words?
Preference shares are shares in a company that are owned by people who have the right to receive part of the company’s profits before the holders of ordinary shares are paid. They also have the right to have their capital repaid if the company fails and has to close. Compare ordinary shares.