In Contrast to Development, Growth Refers to an Increase In

question 45

Multiple Choice

In contrast to development, growth refers to an increase in:

• A)productive capacity with no change in output.
• B)output with no change in productive capacity.
• C)output brought about by an increase in inputs.
• D)output brought about by a change in the production function.

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Definitions:

NPV

Net Present Value; the difference between the present value of cash inflows and outflows over a period, used in capital budgeting to assess the profitability of an investment.

Project

A coordinated agenda of tasks linked together, intended to be carried out over an established duration and within specified cost and limitations.

Corporate Tax Rate

The percentage of a corporation's income that is taken as tax by the government.

Depreciation Tax Shield

A decrease in taxable income for businesses due to the allowance for depreciation, resulting in a lower tax liability.