Use the Following to Answer Questions

question 10

Multiple Choice

Use the following to answer questions:
Figure: Budget Constraint 4
-(Figure: Budget Constraint 4) Refer to the figure. This figure represents the budget constraint of a consumer who purchases flip-flops and sneakers. The slope of the budget constraint is equal to:

• A) the price of sneakers divided by the price of flip-flops.
• B) the price of flip-flops divided by the price of sneakers.
• C) the consumer's income.
• D) the quantity of flip-flops divided by the quantity of sneakers.

---

Definitions:

ROEs

Return on Equity, a measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Total Assets Turnover

A financial ratio that measures how effectively a company uses its total assets to generate sales revenue.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year's time, such as cash, inventory, and receivables.