Which of the Following Is Calculated by Dividing Net Income

question 123

Multiple Choice

Which of the following is calculated by dividing net income by revenues?

• A)Gross profit margin
• B)Current ratio
• C)Net profit margin
• D)Asset turnover

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Definitions:

Automatic Stabilizer

Economic policies and programs, such as unemployment insurance and taxation, that automatically adjust to counteract economic fluctuations without additional government intervention.

Natural Rate

Often refers to the natural rate of unemployment, indicating the lowest unemployment rate an economy can sustain over the long term without causing inflation.

Unemployment

The situation where individuals who are able and willing to work do not find jobs, expressed as a percentage of the labor force.

Real GDP

The measure of a country's economic output adjusted for price changes (inflation or deflation), reflecting the real quantity of goods and services produced.