A Decrease in the Debt-To-Assets Ratio Will Generally Have No

question 22

Multiple Choice

A decrease in the debt-to-assets ratio will generally have no effect on ____ risk.

• A) Financial
• B) Total
• C) Business
• D) Systematic,or market
• E) None of the above (it will affect each type of risk above).

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Definitions:

Consumer Surplus

Consumer surplus is the difference between the total amount consumers are willing and able to pay for a good or service and the total amount they actually pay.

Property Rights

The legal rights to own, use, and dispose of assets including real estate, personal possessions, and intellectual property.

Producer Surplus

The difference between what producers are willing and able to sell a product for and the actual price they receive, representing the extra benefit to producers.

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually pay.