Which of the Following Is Not an Illustration of the Idea

question 113

Multiple Choice

Which of the following is not an illustration of the idea of opportunity cost?

• A)A growing economy can produce more consumer goods and more capital goods at the same time.
• B)If I buy a pizza, I will not be able to afford a movie.
• C)Resources devoted to consumer goods production are not available for capital goods production.
• D)The land a Manitoba farmer plants in wheat is not available for corn production.

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Definitions:

Acid-test Ratio

A liquidity metric that measures a company's ability to pay off its current liabilities with its most liquid assets, without relying on the sale of inventory.

Times Interest

Likely refers to the "Times Interest Earned Ratio" or "Interest Coverage Ratio," which measures a company's ability to meet its interest obligations from earnings.

Debt-to-equity Ratio

A ratio that reflects the mix of debt and equity used to finance a company's assets.

Equity Multiplier

The equity multiplier is a financial ratio that measures the proportion of a company's total assets financed by its shareholders' equity.