A firm’s value depends on the positive net income generated in the past. True False A firm’s value depends on the firm’s ability to generate positive cash flows now and in the future True False When determining the value of a firm, which of the following statements is true? • Inversters are risk neutral. Other things equal they prefer to pay more stocks that are less risky and have uncertain cash flows • Investers love risk. Other things equal they prefer to pay more for stocks that are more risky and have uncertain cash flows.
One of my main takeaways from this topic is that money isn’t the best motivator. According to Mayo’s Hawthorne effect, employees feel more motivated when their efforts are recognized, and this can be achieved through bonuses for example. However, this can increase individualism as employees will focus on outperforming their peers. Intrinsic motivation helps create loyal employees who are more satisfied on a personal level. An example of this could be social security benefits.
This would increase the costs and result in the firms passing on the costs to the consumers, this would increase the prices of the goods causing negative externalities and discourage them from being bought. If there is an over production in the goods due to negative externalities, it means (s) has shifted to (s1). Which results in too many goods being supplied out to the public. The prices are also very low which makes it easier for them to buy goods, especially those with lower income. At the point the social cost [s1] is not taken into account only the private cost is.
He found that people were much more likely to relapse when they believed withdrawals were going to be negative. Those who were told to expect no negative withdrawals were less likely to relapse as they had a positive expectation. This provides evidence for the key role expectancy has in relapse. However Tate’s experiment can be criticised. The independent group design could have meant, by chance, the group who were told to expect no negative withdraws, were naturally more determined people, thus increasing their chance of giving up anyway.
This is because when taxes are increased a smaller amount of income is retained giving people the incentive to declare lower incomes to the HMRC so that they fall into a lower tax bracket. Moreover people may take incomes as a share option. This is because capital gains tax is at a flat rate of 18% therefore much lower that income tax allowing people to retain more of their incomes and enjoy better living standards. This will result in a reduction in the government’s tax revenue as people are paying less tax, which will lead to further increases in the deficits. Secondly high taxes create disincentives to work and this can be analysed through income and substitution effects.
Research Paper English 103 Kurt Matteson While some idolize the rich for their boundless opulence, others dismiss them out of disgust. In either way the wealthy are stripped of their humanity by the masses making them immortal; a persistent reminder of unobtainable luxury. Idolization in itself isn’t necessarily harmful, it sets certain aspirations, and it makes you want to better yourself, wanting to be more like someone or something. It can also take away someone’s humanity, if they are seen as immortal, or a god. The dismissal of a human being can be incepted for many reasons, but it usually leaves the dismissed feeling less human.
PSYC 2100 12/6/11 Money Giveth, Money Taketh Away: The Dual Effect of Wealth on Happiness This study questions whether or not money can buy one’s happiness. Evidence from this study have proven that the income a person shows an important impact on happiness. Those who are more luxurious, when experiencing the best things in life, they tend to forget the simple joys that life brings them instead. When being reminded of wealth, it can apply a deep insight of effects on thought and behavior. In simpler terms, when people are thinking of money, it may lead them to think that any experiences they desire is likely to be attainable.
For example they do not try and put more effort into helping schools who are not as wealthy as some of the other ones. Instead with the powerful in control, they only give the wealthy more power. By doing so, they then give the poor a false consciousness. Therefore the conflict theory is demonstrating how this separation of power is bad and is allowing the poor to think as if they have no option but to keep being poor, and this is not the case. There should be more support on the less wealthy education in order to diminish the gap between the education systems and allow the poor to have better life
The reason being as more of a certain good is consumed, it will begin to provide less utility to the consumer. This means that and extra $1 income would be of more worth to a low income earner than to a high income earner. This suggests that a more equal distribution of income will be beneficial to the total utility. Unfortunately, it is extremely to gain an accurate assessment of relative
Decisions are based on what will maximize profits, thus serving the owners of capital, and not necessarily workers or the communities where factories are located” (Social Problems, pg 427). To prevent this, in relation to the article, I think we should move towards a protectionist society. By doing so, I believe that American workers would have to settle for working for less, but in correspondence, marketable products and the base values of good would decrease proportionally, while American workers would be allowed to maintain their jobs without fear of