According to New Growth Theory, Technological Change Is Driven by

question 300

Multiple Choice

According to new growth theory, technological change is driven by

• A) firmsʹ attempts to increase their profit.
• B) foreign firmsʹ attempts to increase their sales in the domestic market.
• C) government policies.
• D) random chance.

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Definitions:

Inventory Turnover

A measure of how frequently a company sells and replaces its stock of goods during a period, offering insight into sales efficiency and inventory management.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Earnings Before Interest

An indicator of a company's profitability calculated by subtracting all expenses except interest from revenues, commonly referred to as EBIT.

Tax (EBIT)

Taxation calculated on Earnings Before Interest and Taxes, representing the income tax expense charged on a company's operating profit.