Which of the Following Statements Most Likely Lies Within the Realm

question 124

Multiple Choice

Which of the following statements most likely lies within the realm of microeconomics?

• A)​Unemployment rises during a recession and falls during an expansion.
• B)​A rapid acceleration of the supply of money may create inflation.
• C)​An increase in government spending will increase the aggregate demand for goods and services in the economy.
• D)​An increase in labor costs will increase the additional cost of producing another airplane.

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Definitions:

Profit Margin Ratio

A financial metric that measures the extent to which a company or business activity makes money, expressed as a percentage of revenue.

Net Income

The company's earnings post all deductions for expenses and taxes from its income.

Net Sales

The total revenue from sales after subtracting returns, allowances for damaged or missing goods, and discounts.

Return On Common Stockholders' Equity

A financial ratio that measures the amount of net income returned as a percentage of shareholders' equity, indicating the profitability of a company from the common shareholders' perspective.