SCENARIO 13-3 an Economist Is Interested to See How Consumption for an for an Economy

question 144

Multiple Choice

SCENARIO 13-3
An economist is interested to see how consumption for an economy (in $ billions) is influenced by gross domestic product ($ billions) and aggregate price (consumer price index) .The Microsoft Excel output of this regression is partially reproduced below.
-Referring to SCENARIO 13-3, the p-value for GDP is

• A)0.05
• B)0.01
• C)0.001
• D)None of the above.

Calculate the acid-test ratio based on given financial information.

Understand the function and calculation of the gross margin ratio.

Differentiate between the acid-test ratio and current ratio.

Distinguish between merchandise inventory as a current asset and its presentation in financial statements.

---

Definitions:

DMM Display

The visual interface of a Digital Multimeter that shows measurements like voltage, current, and resistance.

Anode

Positive electrode.

Cathode

Negative electrode.

Diode

A two-terminal, solid-state, semiconductor device that allows current flow in one direction only. Acts like a sort of electrical one-way check valve.