Scarcity

question 361

Multiple Choice

Scarcity

• A) exists in all human societies.
• B) is a problem for less-developed nations only.
• C) used to be a problem, but is not an issue for modern industrial nations.
• D) afflicts greedy people only.

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Definitions:

Debt-equity Ratio

A measure of a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity.

Price/earnings Ratio

A valuation metric for a stock, calculated as the market price per share divided by the earnings per share.

Share Repurchase

A corporate action in which a company buys back its own shares from the marketplace, which can increase the value of remaining shares.

Retention Ratio

The proportion of net income that is retained in the business rather than paid out to shareholders, indicating the company's reinvestment rate.