What Would Be an Example of Increased Productivity of Capital

question 87

Multiple Choice

What would be an example of increased productivity of capital?

• A) A potter's workshop starts paying for itself when the potter begins to sell finished pieces.
• B) A new piece of architectural software gets more use as workers gradually get familiar with it.
• C) A forklift moves more pieces per hour when there is a more experienced operator at the wheel.
• D) A new automated lathe performs the same jobs faster than the older model did.
• E) A commercial truck uses less diesel fuel after a tune-up than it did before.

Understand the economic measures used by the Bush administration to stimulate the economy.

Evaluate the success and impact of one-time tax cuts on economic stimulation.

Analyze different economic stimuli and their effectiveness in various contexts.

Understand the principle behind selecting projects based on equivalent annual annuity and its application to different project types.

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Definitions:

Plant Asset

Physical assets with a long lifespan that are employed in business operations without the purpose of being sold, including equipment and structures.

Useful Life

The duration during which an asset is expected to be usable for its intended purpose.

Salvage Value

The projected remaining value of an asset following its operational lifespan, once depreciation or amortization has been taken into account.

Recoverable Ore

The portion of ore that can be economically and technically extracted or produced at a profit.