Which of the Following Principles Is Not One of the Four

question 239

Multiple Choice

Which of the following principles is not one of the four principles of individual decisionmaking?

• A) People face tradeoffs.
• B) Trade can make everyone better off.
• C) People respond to incentives.
• D) Rational people think at the margin.

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Definitions:

Return on Assets Ratio

A financial ratio that indicates how profitable a company is relative to its total assets, measuring how efficiently assets are being used to produce profit.

Total Asset Turnover

A measure of a company's efficiency in using its assets to generate sales or revenue.

Gross Profit Percentage

A financial ratio that expresses a company's gross profit as a percentage of net sales, indicating the efficiency of production and sales activities.