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Tom's Tool Factory Is an Investment Center and Is Responsible

question 56

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Tom's Tool Factory is an investment center and is responsible for all of its net income and the use of its assets.This year,the invested assets totaled $475,000,and net income was $275,000.What is the rate of return on assets?


Definitions:

Price System

An economic mechanism where prices determined by supply and demand allocate resources efficiently in a market economy.

Scarce Goods

Goods that are limited in supply in comparison to their demand, leading to economic decisions regarding their allocation.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded, also known as the market-clearing price.

Demand Curve

A diagram illustrating how the price of a product correlates with the amount of that product buyers are prepared and can afford to buy at different price levels.

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