Profit Margin Is Defined As

question 223

Multiple Choice

Profit margin is defined as:

• A) Revenues divided by net sales.
• B) Net sales divided by assets.
• C) Net income divided by net sales.
• D) Net income divided by assets.
• E) Net sales divided by net income.

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Definitions:

Recessionary Gap

A situation where the real Gross Domestic Product (GDP) is lower than the potential GDP, indicating underutilization of resources.

Multiplier

In economics, a factor by which an initial change in spending leads to a greater change in income and overall economic activity.

National Debt

The total amount of money that a country's government has borrowed, typically through issuing securities.

Fiscal Policy

Government policies related to taxation and spending that aim to influence economic conditions.