The Higher the Rate of Unemployment

question 64

Multiple Choice

The higher the rate of unemployment,

• A) the larger is the GDP gap.
• B) the smaller is the GDP gap.
• C) the higher is the level of actual GDP.
• D) the lower is the level of potential GDP.

Learn how to compute liquidity ratios, specifically the current ratio and acid-test (quick) ratio.

Interpret and calculate performance measures such as profit margin and return on total assets.

Understand the significance and calculation of working capital.

Comprehend the implications of financial ratios in evaluating a company’s solvency, liquidity, and operational efficiency.

---

Definitions:

Liabilities

Monetary liabilities or dues that a company or person has to pay back to lenders.

Equity

The value that would be returned to a company's shareholders if all of the assets were liquidated and all of the debts were paid off.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity.

Balance Sheet

An economic report indicating a company's possessions, financial responsibilities, and the value belonging to shareholders at a certain instance.