What Is the Best Economic Explanation for Why a Person

question 85

Multiple Choice

What is the best economic explanation for why a person would drop out of college to take a job or start a business?

• A) he has a good idea for starting a business
• B) he has to pay a higher tuition to attend college
• C) the expected future benefits from starting a business now are greater than the costs
• D) the opportunity cost of starting a business is high now, but will be low later in life

---

Definitions:

Average Sale Period

A financial metric measuring the average time it takes for a company's inventory to turn into sales, often seen as part of inventory turnover analysis.

Price-earnings Ratio

A valuation metric that compares a company's current share price to its per-share earnings.

Dividend Payout Ratio

A financial metric that measures the percentage of a company's earnings paid out to shareholders as dividends, indicating how much money a company returns to shareholders versus how much it keeps to reinvest.

Gross Margin Percentage

A profitability metric calculated as gross margin (sales minus cost of goods sold) divided by sales, expressed as a percentage.