New Growth Theory Emphasizes the Importance of All of the Following

question 72

Multiple Choice

New growth theory emphasizes the importance of all of the following except:

• A)positive externalities.
• B)diminishing marginal productivity.
• C)technology.
• D)learning by doing.

---

Definitions:

Average Rate of Return

A financial ratio that shows the average annual return on an investment, expressed as a percentage of the initial investment cost.

Estimated Annual Net Income

The projection of net earnings over a given fiscal year, taking into account all expected revenue and expenses.

Cash Payback Period

The length of time it takes for an investment to generate enough cash flow to recoup the original investment.

Annual Net Cash Flows

The net amount of cash that is received or expended by a business during a year, after all cash inflows and outflows are accounted for.