Which of the Following Newspaper Headlines Is More Closely Related

question 118

Multiple Choice

Which of the following newspaper headlines is more closely related to what microeconomists study than to what macroeconomists study?

• A)Unemployment rate rises from 5 percent to 5.5 percent.
• B)Real GDP grows by 3.1 percent in the third quarter.
• C)Retail sales at stores show large gains.
• D)The price of oranges rises after an early frost.

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Definitions:

Sales on Account

Transactions where goods are sold and payment is to be made at a later date, often recognized as accounts receivable.

Cost of Goods Sold

An accounting term representing the direct costs attributable to the production of the goods sold in a company, including materials and labor.

Accounts Receivable Turnover

A financial ratio that measures how effectively a company collects debts from its customers, calculated as sales divided by the average accounts receivable.

Total Assets

The summation of all resources owned by a company, valued in monetary terms, including property, cash, investments, and inventory.