An Increase in the Price of Gold Is Always Associated

question 198

Multiple Choice

An increase in the price of gold is always associated with the outbreak of wars; increasing gold prices cause wars. This would be an example of what logical misconception?

• A) ceteris paribus
• B) correlation is causation
• C) laissez-faire
• D) nonlinearity

Calculate and interpret working capital.

Understand the computation and significance of the acid-test (quick) ratio.

Calculate and interpret accounts receivable turnover.

Understand the calculation of average sale and collection periods.

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Definitions:

Law of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, will begin to decrease, assuming all other variables are constant.

Short Run

A time period in economics during which at least one input is fixed while others are variable.

Marginal Products

The additional output that is produced by utilizing one more unit of a variable input, holding all other inputs constant.

Sales Clerks

Employees who assist customers, handle transactions, and maintain merchandise organization in retail environments.