Improvements in Output Per Worker

question 35

Multiple Choice

Improvements in output per worker

• A)Depend only on increases in the quantity of capital equipment.
• B)Depend only on increases in the quality of capital equipment.
• C)Depend in large part on increases in the quality of capital equipment and the quantity of capital equipment per worker.
• D)Do not depend on increases in the quantity of capital equipment or the quality of capital equipment.

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Definitions:

Required Rate

The minimum return that investors demand for investing in a specific asset or undertaking a project.

Risk Premium

The additional return an investor expects to receive from an investment by taking on a higher level of risk.

Risk-Free Interest

Risk-free interest is the theoretical rate of return of an investment with zero risk, serving as a benchmark for evaluating the risk and return of other investments.

Negative Beta Stocks

These are stocks that tend to move inversely to the overall stock market; when the market rises, these stocks' prices may fall, and vice versa.