Recall the Application About Adapting Growth Accounting to New Developments

question 16

Multiple Choice

Recall the Application about adapting growth accounting to new developments in the economy to answer the following question(s) .
-According to this Application, economists Carol Corrado and Charles Hulten found that in recent years, as a source of economic growth,

• A) the contributions from tangible capital and intangible capital are, at best, negligible.
• B) the contributions from tangible capital and intangible capital are about the same.
• C) the contribution from intangible capital exceeded the contribution from tangible capital.
• D) the contribution from tangible capital exceeded the contribution from intangible capital.

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Definitions:

Fixed Costs

Costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance.

EBIT

Earnings Before Interest and Taxes, also known as EBIT, is a way to evaluate a company's profit without considering tax and interest expenses.

Financial Risk

The likelihood of experiencing a loss of money in a business operation or investment.

EBIT

A financial metric, Earnings Before Interest and Taxes, calculates a business's income by including all earnings and expenditures with the exception of those from interest and taxes.