Which of the Following Are Examples of a Firm Experiencing

question 307

Essay

Which of the following are examples of a firm experiencing a positive technological change?
a.A firm is able to reduce its inputs by 15 percent and still produce the same level of output.
b.A seminar attended by the firm's workers makes them more productive.
c.A firm adds 5 percent to its workforce and is able to maintain its initial level of output.
d.A firm restructures its distribution system and is able to save on its shipping times.
e.A firm rearranges its warehouse and finds that it can use fewer workers to maintain its productivity level.

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Definitions:

Passive Loss Rules

U.S. tax regulations that restrict the amount of losses investors can claim from passive activities to the amount of income generated by those activities.

Gain(Loss)

The profit or shortfall realized from an investment when comparing the sale price to the original purchase price.

At-risk Amount

The maximum amount of money an investor in certain activities can claim as a deduction or loss, limited to the actual cash, property, or borrowed amounts for which they are personally at risk.

Income Items

Various types of earnings, from employment, investments, or other sources, that must be reported on a tax return.