Mathilda, Who Works for an Insurance Company, Has the Capacity

question 122

Multiple Choice

Mathilda, who works for an insurance company, has the capacity to sell fifteen insurance policies a day. However, she sells only ten insurance policies a day. This is a typical example of _____.

• A) information asymmetry
• B) the glass ceiling effect
• C) inefficiency
• D) an ecological fallacy
• E) the functional chimneys problem

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Definitions:

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the net profit from an investment by the original capital cost.

Invested Assets

Assets acquired for the purpose of generating income through investment, rather than for use in the operations of a business.

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales generated, indicating the efficiency of a company in converting sales into profits.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefits of an investment by its costs.