If an Economy Begins to Use Its Resources More Efficiently

question 190

Multiple Choice

If an economy begins to use its resources more efficiently, it will move

• A) closer to its ppf.
• B) farther away from its ppf.
• C) from a point along its ppf to a point outside its ppf.
• D) from one point to another point along its ppf.

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Definitions:

Times Interest Earned

A ratio that measures a company's ability to meet its debt obligations based on its earnings before interest and taxes.

Net Income

The amount of money a company ultimately earns once it subtracts expenses and taxes from its gross revenue.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds.

Carrying Value

The recorded cost of an asset in a company's books, less any accumulated depreciation or amortization.