Over the Course of Nearly a Hundred Years,Omega's Labor Productivity

question 117

Multiple Choice

Over the course of nearly a hundred years,Omega's labor productivity has increases over time as its employees understand the most efficient ways to perform particular tasks.This is a result of

• A)diminishing returns.
• B)location economies.
• C)economies of time.
• D)learning effects.
• E)an efficiency frontier.

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Definitions:

Current Ratio

This ratio evaluates the ability of a business to cover its obligations due in the next year, by calculating the proportion of its current assets to its current liabilities.

Working Capital

An indicator of a company's short-term financial health, calculated as current assets minus current liabilities.

Acid-test Ratio

A liquidity metric that measures a company's ability to pay off its current liabilities with its most liquid assets, without relying on the sale of inventory.

Times Interest

Likely refers to the "Times Interest Earned Ratio" or "Interest Coverage Ratio," which measures a company's ability to meet its interest obligations from earnings.