When Economists Make Positive Statements,they Are

question 47

Multiple Choice

When economists make positive statements,they are

• A)speaking as scientists.
• B)speaking as policy advisers.
• C)making claims about how the world should be.
• D)revealing that they are very conservative in their views of how the world works.

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Definitions:

Equity Multiplier

A financial leverage ratio that measures the portion of a company’s assets that are financed by stockholder's equity.

Profit Margin

The percentage of revenue that remains as income after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from total revenue.

Fixed Asset Capacity

The maximum production or service level that a company can sustain with its current fixed assets, such as machinery and equipment.

Current Sales

The total recorded sales of a company within the current financial period.