When a Country Is Producing Goods and Services Efficiently It

question 38

Multiple Choice

When a country is producing goods and services efficiently it:

• A) is producing at a point on or below its production possibilities frontier.
• B) is getting the most output by using all its available resources.
• C) has unemployed workers.
• D) is able to reach a point beyond its production possibilities frontier.

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Definitions:

Total Asset Turnover

A ratio calculating how effectively a company utilizes its assets to produce sales income.

Return on Equity

A measure of a corporation's profitability, indicated by the amount of net income returned as a percentage of shareholders equity.

Return on Assets

A financial ratio indicating how efficiently a company uses its assets to generate profit.

Equity Multiplier

An equity multiplier is a financial ratio that measures the proportion of a company’s total assets financed by its shareholders' equity, demonstrating the degree of financial leverage being used.