Select the Incorrect Statement Regarding Net Margin

question 69

Multiple Choice

Select the incorrect statement regarding net margin.

• A)Net margin refers to the average amount of each sales dollar remaining after all expenses are subtracted.
• B)Net margin may be calculated in several ways.
• C)The smaller the net margin the better.
• D)The amount of net margin is affected by a company's choices of accounting principles.

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Definitions:

Recessionary Gap

A situation in macroeconomics where actual output is less than the potential output of an economy, often marked by high unemployment.

Short-Run Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a specific time period, assuming that the prices of inputs remain constant.

Sticky Prices

Refers to the resistance of prices to change, despite shifts in the broader economy or a product's supply and demand.

Price Level

An index or average that reflects the overall price of goods and services in an economy at a given time, often used to measure inflation or deflation.