Match Each Definition That Follows with the Term (A-F) It

question 58

Multiple Choice

Match each definition that follows with the term (a-f) it defines.
-A measure of the average income as a percent of the average investment

• A)Capital rationing
• B)Annuity
• C)Capital investment analysis
• D)Internal rate of return method
• E)Payback period
• F)Accounting rate of return

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Definitions:

Fixed Costs

Business expenses that remain constant regardless of the level of production or business activity, such as rent, salaries, and loan payments.

Cross Elasticity

A measure of how the demand for one good responds to a change in the price of another good.

Normal Good

A good for which demand increases as the income of consumers increases, and falls when consumer income decreases.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specified time period.