A Firm's Profit Objective Is Often Measured in Terms of ROI

question 197

Multiple Choice

A firm's profit objective is often measured in terms of ROI. The acronym ROI stands for

• A) risk opportunity investment.
• B) revised organizational incentives.
• C) return on investment.
• D) regulated organizational investments.
• E) replenishment of organizational inventories.

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Definitions:

Sacrifice Ratio

The sacrifice ratio is an economic concept that measures the cost of reducing inflation in terms of lost output or unemployment.

Disinflates

A process in which the rate of inflation decreases over time but does not turn negative.

Disinflation

A slowdown in the rate of inflation, indicating a reduction in the rate at which prices for goods and services rise over time.

Favorable Supply Shock

A situation in which the supply of goods increases, leading to lower prices and benefiting consumers.