Which of the Following Is an Example of a Capital

question 109

Multiple Choice

Which of the following is an example of a capital structure?

• A)15 percent current assets and 85 percent fixed assets
• B)10 percent current liabilities and 90 percent long-term debt
• C)20 percent debt and 80 percent equity
• D)None of these

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Definitions:

Consumer Surplus

The gap between the price consumers are ready to offer for a good or service and the effective amount they spend on it.

Trade

The process of purchasing, vending, or trading products and services among individuals or nations.

Factor Endowments

The amount of land, labor, capital, and entrepreneurship that a country or region possesses, which determines its comparative advantage in international trade.

Comparative Advantage

The ability of an individual or entity to produce goods or services at a lower opportunity cost than other producers.