What Is the Current Ratio

question 26

Multiple Choice

What is the current ratio?

• A)Current liabilities/current assets.
• B)Current assets/current liabilities.
• C)Liquid assets/total monthly household expenses.
• D)Total monthly household expenses/liquid assets.
• E)None of the above.

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Definitions:

Public Good

A good that is non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from its use and one person's use does not diminish its availability to others.

Nonexclusion

A characteristic of certain goods where it is difficult or impossible to exclude individuals from using the good, often leading to issues with free riders.

Free-rider Problem

A situation where individuals benefit from resources or services without paying for their use, leading to under-provision or depletion of resources.

Nonrival Goods

Goods whose consumption by one individual does not reduce availability to others, such as public parks or broadcast television.