The Branch of Economics That Examines the Choices of Consumers

question 140

Multiple Choice

The branch of economics that examines the choices of consumers and firms is:

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

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Definitions:

Retention Ratio

A metric that shows the percentage of net income retained in the company rather than paid out as dividends to shareholders.

Debt-Equity Ratio

The quotient representing a company's use of debt over equity, obtained by dividing its liabilities total by shareholder equity.

Total Asset Turnover

A financial ratio that measures a company's ability to generate sales from its assets by comparing net sales with average total assets.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, showing the profitability of a company.