Please Refer to Table 4-2 for the Following Questions

question 115

Multiple Choice

Please refer to Table 4-2 for the following questions.
Table 4-2
Drummond Company
Balance Sheet

-Based on the information in Table 4-2,the debt ratio is

• A) 28.12%.
• B) 34.74%.
• C) 45.69%.
• D) 42.03%.

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Definitions:

Consumer Surplus

The gap between the price consumers are ready to offer for a good or service and the effective amount they spend on it.

Trade

The process of purchasing, vending, or trading products and services among individuals or nations.

Factor Endowments

The amount of land, labor, capital, and entrepreneurship that a country or region possesses, which determines its comparative advantage in international trade.

Comparative Advantage

The ability of an individual or entity to produce goods or services at a lower opportunity cost than other producers.