Examlex

Solved

In Graphing a Relationship Between Two Variables, Economists Always Follow

question 32

True/False

In graphing a relationship between two variables, economists always follow the mathematical convention. Thus, if price is the independent variable then it is measured on the horizontal axis.


Definitions:

Repurchase Shares

involves a company buying back its own shares from the marketplace, which can reduce the number of outstanding shares and potentially increase the value of remaining shares.

Borrow

The act of receiving funds from a lender under the agreement to return the principal amount plus interest or other charges.

Indifference EBIT

The earnings before interest and taxes level at which a company will have no preference between two or more financial actions due to equivalent financial outcomes.

Capital Structure

The combination of borrowing and ownership investment utilized by a business to finance its activities and expansion.

Related Questions