New Technology Makes Capital ________ and Income Will ________

question 66

Multiple Choice

New technology makes capital ________ and income will ________.

• A) more productive; remain unchanged
• B) less productive; decrease
• C) unnecessary; increase
• D) more productive; increase
• E) less productive; increase

Recognize the scapegoat theory and its role in fostering prejudice.

Identify theories that explain the origins and functions of prejudice.

Understand how in-group and out-group perceptions influence social biases.

Comprehend the availability heuristic and its impact on judgment.

---

Definitions:

Reinvestment Assumption

The theory that cash flows will be reinvested at a constant rate, often used in financial modeling.

Cost of Capital

The rate of return that a business must achieve in order to generate value, representing the opportunity cost of investing capital in a specific business rather than in an alternative venture.

Average Return

A statistical measure representing the mean outcome or yield from an investment over a given period of time.

NPV

Net Present Value; a calculation used to determine the value of an investment by subtracting the present values of cash outflows (including initial cost) from the present values of cash inflows over a period of time.