Which of the Following Statements Is Most Consistent with Efficient

question 45

Multiple Choice

Which of the following statements is most consistent with efficient inventory management? The firm has a

• A) below-average inventory turnover ratio.
• B) low incidence of production schedule disruptions.
• C) below-average total assets turnover ratio.
• D) relatively high current ratio.
• E) relatively low DSO.

Analyze the impact of transaction costs on the ability to achieve efficient solutions to externality problems.

Distinguish between the concepts of internalizing externalities and the role of property rights in this process.

Understand the relationship between marginal social benefit, marginal social cost, and the efficient quantity of pollution or externalities.

Understand the concept of marginal social benefits and costs in the context of pollution from coal mines.

---

Definitions:

Repression

A psychological process where individuals unconsciously block out painful or unwanted memories and desires from their conscious awareness.

Id

A component of Sigmund Freud's psychoanalytic theory, representing the unorganized part of the personality structure that contains basic instinctual drives.

Ego

In psychoanalytic theory, the part of the mind that mediates between the conscious and unconscious and is responsible for reality testing and a sense of personal identity.

Superego

The component of the human psyche in Freudian psychoanalytic theory that holds internalized moral standards and ideals acquired from parents and society, governing over the ego.