When Is an Economic Outcome Said to Be Efficient

question 224

Multiple Choice

When is an economic outcome said to be efficient?

• A)if the economy is using all of the resources it has available
• B)if the economy is conserving on resources and not using all it has
• C)if the economy is getting all it can from the scarce resources it has available
• D)if the economy is able to produce more than its current production without additional resources

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Definitions:

Bankruptcy Risk

The risk that a company will be unable to meet its debt obligations and forced to seek protection under bankruptcy laws.

Default Risk

The risk that a borrower will not make the required payments on its debt obligations.

Common-Size Financial Statements

These are financial documents where all line items are expressed as a percentage of a specific figure from the statement, facilitating ratio analysis and comparability.

Base Number

A reference point or initial value used in calculations to compare other numbers or for indexing purposes.