Microeconomics Includes the Study of the

question 169

Multiple Choice

Microeconomics includes the study of the

• A) aggregate effects on the national economy.
• B) recessions and inflation in the global economy.
• C) choices made by individuals and businesses.
• D) reasons why the government changes interest rates.
• E) nationwide unemployment rate.

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Definitions:

Cash Receipts

The collection of money, including coins, currency, checks, and electronic transfers, received by a business or organization.

Default Risk

The possibility that a debtor will fail to fulfill their financial liabilities as agreed upon.

Financial Ratios

Financial ratios are quantitative measures derived from financial statement analysis to evaluate the financial performance, condition, and valuation of a company.

Loan Decision

The process undertaken by lenders to determine whether to make funds available to borrowers under certain terms.