What Is the Reason Why So Many Managers Use Financial

question 70

Multiple Choice

What is the reason why so many managers use financial measures to assess the efficiency and effectiveness of their organizations?

• A)Objectivity
• B)Subjectivity
• C)Feasibility
• D)Ease of use
• E)Creativity

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Definitions:

Gains from Trade

Gains from trade refer to the increase in consumer and producer surplus that occurs when countries specialize in the production of goods and services in which they have a comparative advantage and then trade with others.

Deadweight Losses

Losses in social welfare, usually measured in terms of lost revenue or surplus, resulting from inefficiencies in a market or the economy.

Taxes

Necessary financial levies or assorted kinds of dues imposed on an individual by a governmental structure to facilitate government finance and numerous public investments.

Deadweight Loss

A decrease in economic productivity that happens when a good or service does not reach or cannot reach its equilibrium state.