If It Is Cheaper in the Long Run to Use

question 249

Multiple Choice

If it is cheaper in the long run to use a new metal plow that lasts a long time than an inferior wooden plow that needs to be replaced often, then this is an example of

• A)a capital-using technology.
• B)a capital-saving technology.
• C)capital consumption.
• D)private capital flows.

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Definitions:

Income Tax Rate

The rate at which a person or business pays taxes on their earnings.

Net Income

Net Income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicative of the company's profitability.

Domestic Corporations

Companies that are incorporated and operate in the same country where they were established.

Tax-free Transaction

A financial transaction that is not subject to taxes by the governing authority, often used in strategic financial planning.