The Study of the Choices Made by Individuals Is Part

question 240

Multiple Choice

The study of the choices made by individuals is part of the definition of

• A) microeconomics.
• B) positive economics.
• C) macroeconomics.
• D) normative economics.

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Definitions:

Times Interest Earned Ratio

A measure of a company's ability to meet its interest obligations, calculated as earnings before interest and taxes divided by interest expense.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, including issuing or repurchasing equity and debt.

Financial Assets

Assets that derive value because of a contractual right or ownership claim, including stocks, bonds, and bank deposits.

Ratio Analysis

A quantitative analysis of information contained in a company’s financial statements, used to evaluate the performance, liquidity, profitability, and solvency of the business.