The Increase in the Size of Shopping Carts for the Past

question 95

Multiple Choice

The increase in the size of shopping carts for the past three decades is due to:

• A)the increase in the income per capita over time.
• B)the intention of store owners to sell more.
• C)the decrease in the cost of producing the carts.
• D)the increase in the opportunity cost of time.

---

Definitions:

Tax Shield

The reduction in income taxes that result from taking a deductible expense, such as mortgage interest, which reduces taxable income.

Financial Distress Costs

Expenses that a company faces when it is having difficulty meeting its financial obligations, which can include legal, restructuring, and operational costs.

Debt-equity Ratio

The ratio highlighting the financial mix of equity and debt used in the acquisition of company assets.

Break-even Level

The juncture where overall expenses match the total income, leading to neither a net profit nor a loss.