What Are Factors of Production

question 73

Multiple Choice

What are factors of production?

• A) positive or negative changes in inventory
• B) weather and social and political conditions that affect production
• C) the physical relationships between economic inputs and outputs
• D) inputs into the production process

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Definitions:

Acid-Test Ratio

A stringent indicator of a company's short-term liquidity position, calculated by dividing liquid assets (excluding inventories) by current liabilities.

Current Ratio

The current ratio is a liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets.

Trend Percentage

A form of financial analysis that shows the direction of change in financial statements items over multiple periods.

Financial Ratios

These are calculations that measure a company's financial performance by comparing two or more financial metrics from financial statements.