Which of the Following Statements Correctly Indicates a Property of Good

question 91

Multiple Choice

Which of the following statements correctly indicates a property of good economic questions?

• A) A good economic question should always be easy to answer.
• B) A good economic question should always be positive and not normative.
• C) A good economic question must always include arithmetic calculations and graphical solutions.
• D) A good economic question addresses topics that are important to economic agents and/or to society.

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Definitions:

Total Asset Turnover

A financial ratio that measures the efficiency of a company in using its assets to generate sales revenue, calculated by dividing sales by total assets.

Inventory Turnover

A financial ratio indicating the number of times a company's inventory is sold and replaced over a period.

Debt Ratio

A financial ratio that measures the extent of a company’s or individual's leverage, calculated by dividing total liabilities by total assets.

Days' Sales in Inventory

A financial metric that calculates the average number of days a company takes to sell its inventory, indicating the efficiency of inventory management.