Economists Use the Percentage Change in Quantity Rather Than the Absolute

question 138

Multiple Choice

Economists use the percentage change in quantity rather than the absolute change in quantity because:

• A) percentage changes are easier to calculate than absolute changes.
• B) the measured elasticity is the same regardless of the unit of measurement for quantity.
• C) absolute changes are confusing to convert.
• D) absolute changes often result in negative numbers.

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Definitions:

Future Payments

Obligations that are due to be paid at a future date.

Liabilities

Debts or obligations that arise during the course of business operations, which must eventually be paid off or settled.

Contingent Liabilities

Potential liabilities that may occur depending on the outcome of a future event.

Times Interest Earned

A financial metric assessing a company's capacity to fulfill its debt responsibilities using its present earnings.