Which of the Following Statements Is TRUE

question 222

Multiple Choice

Which of the following statements is TRUE?
I. In order for society to have a sufficient level of national defense, the government must tax the public to raise funds for a standing army.
II. For every 100 people that use a public good, approximately 500 people are prevented from using it.
III. People do not have an incentive to voluntarily pay for nonexcludable goods.

• A) I and II only
• B) III only
• C) I and III only
• D) I, II, and III

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Definitions:

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated as total liabilities divided by total assets.

ROE

Return on Equity (ROE) is a financial ratio that measures the profitability of a company in relation to shareholders' equity, indicating how well the company uses investments to generate earnings growth.

Total Assets Turnover

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue.

Equity Multiplier

A measure of a company's financial leverage, calculated as total assets divided by total equity.