Which Statement Is True

question 10

Multiple Choice

Which statement is true?

• A)On the production possibilities frontier we have zero unemployment.
• B)On the production possibilities frontier 95 percent of the labor force is employed.
• C)To get out of a recession,we must produce at some point beyond our production possibilities frontier.
• D)To have economic growth,we must push the production possibilities frontier inwarD.

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Definitions:

Preferred Stock

A class of ownership in a corporation with a fixed dividend that is paid before any dividends are paid to common stockholders. Preferred stock typically does not have voting rights.

Return On Assets Ratio

A profitability ratio that measures how efficiently a company can manage its assets to produce net income, calculated by dividing net income by total assets.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue, indicating financial health.

Total Assets

The sum of all assets owned by a company, displayed on the balance sheet, including current and non-current assets.