As Long as Scarcity Exists

question 39

Multiple Choice

As long as scarcity exists,

• A)product prices play no role in utility maximization
• B)income plays no role in utility maximization
• C)income and product prices must both be considered in utility maximization
• D)consumers maximize utility by consuming all products until their marginal utility is zero
• E)product prices will be zero

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Definitions:

Price-Earnings

A ratio used to evaluate a company's stock price relative to its per-share earnings, indicating the value that investors put on a company's earning power.

Dividend Yield

Dividend yield is a financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue—the higher the number, the better the performance.

Total Assets

The aggregate of all resources owned by a company, valued in monetary terms, including both current and non-current assets.