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Question # 2: (10 point) A- Thaler investigated the implications of relaxing the standard economic assumption that everyone in the economy is rational and selfish,

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Question # 2: (10 point) A- Thaler investigated the implications of relaxing the standard economic assumption that everyone in the economy is rational and selfish, instead entertaining the possibility that some of the agents in the economy are sometimes human. These studies laid the groundwork for a new field of study, termed behavioral finance. What do the term Behavioral Finance mean? (2 points) B-Differentiate between Normative theories and Positive theories of accounting? (2 points) C- Define what is meant by anomalies? Give four examples of these types of anomalies? (2 points) D- As a supplementary information what do we mean by inflation (Price Level Information?) (2 point) E- what do we mean by subsequent events for financial year end? (2 point)

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