When Studying Economic Data,and When Comparing the Magnitude of Changes

question 128

Multiple Choice

When studying economic data,and when comparing the magnitude of changes in variables with different scales it is best to

• A)compare the absolute data on each variable.
• B)compare the relative data on each variable.
• C)express each variable as an index number.
• D)express each variable as a logarithmic number.
• E)use only time-series data.

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Definitions:

Bankruptcy Law

The area of law that deals with the legal process for businesses or individuals unable to repay their outstanding debts.

Creditors' Claims

Rights to payment from debtors, typically arising from loans or credit offered to businesses or individuals.

Liquidated

Refers to the process of selling off a company's assets to pay off creditors or to cease operations.

Jack Stack

A business leader and author known for pioneering the concept of open-book management and the success of SRC Holdings Corporation.