Which of the Following Is Unlikely to Be a Source

question 7

Multiple Choice

Which of the following is unlikely to be a source of increasing productivity?

• A) better raw materials even if there are no changes in factor quantities or proportions
• B) increases in technological know- how
• C) better organization of production
• D) substitution toward labour and away from capital (with constant technology)
• E) better- trained labour

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Definitions:

Net Investment

The total amount spent on purchasing new capital assets minus depreciation on existing assets, indicating the actual increase in a company's capital stock.

Cash Operating Costs

Expenses directly related to the daily operational activities of a business, excluding financing costs and taxes.

Depreciated

An accounting process of allocating the cost of a tangible asset over its useful life, reflecting its decrease in value over time.

Marginal Tax Rate

The rate at which an additional dollar of income would be taxed, giving insight into the impact of potential income increases on one's tax burden.