Which One of the Following Would Not Be Considered a Liquidity

question 162

Multiple Choice

Which one of the following would not be considered a liquidity ratio?

• A) Current ratio
• B) Inventory turnover
• C) Acid-test ratio
• D) Return on assets

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Definitions:

Marginal Utility

The additional satisfaction or advantage a consumer experiences from consuming one more unit of a product or service.

Maximizing Utility

Maximizing Utility refers to the economic goal of consumers to gain the highest level of satisfaction from their consumption choices, within their budget constraints.

Salience of Prices

The degree to which the price of a good or service stands out to consumers and influences their purchasing decisions.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.