The Short Run Refers to a Period

question 4

Multiple Choice

The short run refers to a period:

• A) of several days.
• B) during which prices are sticky and unemployment may occur.
• C) during which capital and labor are fully employed.
• D) during which there are no fluctuations.

---

Definitions:

Gross Margin Percentage

A financial metric that measures the proportion of money left over from revenues after accounting for the cost of goods sold (COGS), expressed as a percentage.

Financial Leverage

A difference between the rate of return on assets and the rate paid to creditors.

Price-Earnings Ratio

A valuation metric that shows the relationship between a company's stock price and its earnings per share.

Dividends

Payments made to shareholders out of a company's profits, often on a regular basis.