Which of the Following Is Not an Explanation Put Forward

question 74

Multiple Choice

Which of the following is not an explanation put forward to explain the recent productivity slowdown?

• A)Consumers and firms are paying down highlevels of debt instead of investing in productive projects.
• B)Overinvestment during the boom that preceded the Great Recession created overcapacity.
• C)Technological progress itself may have stalled, until invention and innovation levels bounce back.
• D)A massive influx of immigrant labor has caused the labor force to expand much faster than real GDP.

Realize the importance of expected future cash flows in the valuation of financial assets.

Understand the effect of changes in required rates of return on stock valuation using the dividend growth model.

Understand the core aspects of Porter's Five Forces Model and its application to evaluating competition.

Identify elements of the value chain analysis and its role in identifying a company's core competencies.

---

Definitions:

Multiproduct Firm

A company that produces and sells more than one product or service, thereby diversifying its offerings and potentially reducing risk.

Produces and Sells

The activities involved in manufacturing goods and then selling them to customers.

Variable Costing

A costing method that includes only variable production costs in the cost of goods sold and treats fixed manufacturing overhead as a period expense.

External Financial Reporting

The process of reporting financial information to external stakeholders, such as investors and creditors, through financial statements.