Figure 34-5 ​ From the Graph in Figure 34-5 (Curves Show Output Per

question 40

Multiple Choice

Figure 34-5 ​

From the graph in Figure 34-5 (curves show output per unit of labor input) , one can infer that

• A)in terms of TVs, computers are more expensive in China than Japan.
• B)in terms of computers, TVs are more expensive in China than Japan.
• C)China should produce more TVs and fewer computers.
• D)All of the above are correct.

---

Definitions:

Times Interest Earned Ratio

A financial metric assessing a company's ability to meet its debt obligations by comparing its income before interest and taxes (EBIT) to its interest expenses.

Net Income

The profit resulting after all expenses, taxes, and costs have been deducted from total revenues.

Interest Expense

The cost incurred by an entity for borrowed funds, which can include costs related to bonds, loans, and lines of credit.

Inventory Turnover Ratio

A financial metric indicating how many times a company's inventory is sold and replaced over a specific period.