Economics Involves Marginal Analysis Because

question 348

Multiple Choice

Economics involves marginal analysis because

• A) most decisions involve changes from the present situation.
• B) marginal benefits always exceed marginal costs.
• C) marginal costs always exceed marginal benefits.
• D) much economic behavior is irrational.

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Definitions:

Quick Ratio

A liquidity measure that indicates a company's ability to cover its short-term liabilities with its most liquid assets.

Cash Ratio

A liquidity ratio that measures a company's ability to pay off its short-term liabilities with its cash and cash equivalents alone.

NWC to Total Assets

A financial ratio that measures the net working capital (current assets minus current liabilities) in relation to the total assets of a company.

Interval Measure

A type of data measurement that includes order and a fixed measurement scale, allowing for the calculation of meaningful differences between data points.