The Basic Principles of Economics Suggest That

question 80

Multiple Choice

The basic principles of economics suggest that

• A)markets are seldom,if ever,a good way to organize economic activity.
• B)government should become involved in markets when trade between countries is involved.
• C)government should become involved in markets when those markets fail to produce efficient or fair outcomes.
• D)All of the above are correct.

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Definitions:

Interval Measure

The interval measure is a liquidity metric that estimates how long a company can operate using its current liquid assets without needing additional financing.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as (current assets - inventories) / current liabilities.

Inventory

The goods and materials a business holds for the ultimate goal of resale or processing.

Current Ratio

A measure of how well a company can satisfy its short-term due debts, revealing its liquidity over the year.