We Can Use Macroeconomic Analysis to

question 233

Multiple Choice

We can use macroeconomic analysis to

• A) learn how to balance a checkbook.
• B) study the choices made by households.
• C) understand marginal changes in the macroeconomy.
• D) understand why economies grow.

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Definitions:

Stockholders' Equity

The stake that shareholders have in a company, which is the value left over from the company's assets after paying off all liabilities.

Return On Total Assets

A financial ratio indicating how effectively a company is using its assets to generate earnings.

Total Assets

The aggregate of all monetary values of everything a company owns or controls, with economic value expected to provide a future benefit.

Stockholders' Equity

The amount of assets remaining in a company after all liabilities have been deducted, essentially representing the owners' claim on the company's assets.