Figure 5-6 -Which of the Following Observations Is Not True of a True

question 160

Multiple Choice

Figure 5-6
-Which of the following observations is not true of a budget line?

• A)It indicates what choices are available to the consumer.
• B)It is a curve of constant expenditure.
• C)Its slope reports the market terms on which the consumer can trade one good for another.
• D)It helps examine the consumer's preferences.

---

Definitions:

ROCE

Return on Capital Employed; a financial ratio that measures a company's profitability and the efficiency with which its capital is employed.

Operating Profit Margin

A profitability ratio calculated by dividing operating profit by total revenue, reflecting the percentage of revenue that is left over after paying for variable costs of production.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets to generate sales or revenue.

Return On Assets

A financial metric that indicates how profitable a company is relative to its total assets, measuring how efficiently a company uses its assets to generate earnings.