Precepts of the Classical School of Economics Include All of the Following

question 13

Multiple Choice

Precepts of the classical school of economics include all of the following EXCEPT:

• A) by adjusting to varying levels of demand and supply, markets are usually efficient in organizing economic activity.
• B) general non-intervention by government, that is, "laissez faire" (allow to do).
• C) regular government intervention to assure stability and growth in the economy.
• D) if government intervention is necessary, it should be with the goal of increasing economic activity.
• E) money is important as a medium of exchange, but printing excess money will lead to inflation.

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Definitions:

Cash Conversion Cycle

A metric that expresses the duration (in days) it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

DSO

Days Sales Outstanding, a measure of the average number of days that a company takes to collect revenue after a sale has been made.

Average Inventory

It is the mean value of inventory within a specific period, calculated to help understand inventory levels and manage them effectively.

Cash Budget

A cash budget is a financial plan that estimates cash inflows and outflows over a specified period, often used by businesses to manage liquidity.