According to the Text, Why Are Some Countries Rich and Others

question 28

Multiple Choice

According to the text, why are some countries rich and others very poor?

• A) Some countries have no oil.
• B) People have no property rights.
• C) Access to education is very limited.
• D) High tariffs prevent international trade.
• E) All of these.

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Definitions:

Times Interest Earned

Times interest earned is a financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.

Interest Expense

The cost of borrowing money.

Income Tax Expense

The cost associated with income taxes owed to federal, state, or local governments, recognized in the accounting period in which the income was earned.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.