Which of the Following Is an Example of a Cost

question 73

Multiple Choice

Which of the following is an example of a cost incurred in generating higher levels of GDP per capita?

• A) A high level of investment in infrastructure.
• B) An increase in worker productivity from improved health and education services.
• C) A high number of hours worked per week.
• D) An increase in innovation that aids the development of new products.

---

Definitions:

Minimum Acceptable Return

The minimum return on an investment that is required by an investor or fund manager, taking into account the risk of the investment.

Divisional Assets

Assets that are specific to, or used by, a particular division within a company.

Profit Margin

The ratio of net income earned to total revenue received by a business, indicating the efficiency of converting sales into profit.

Investment Turnover

A ratio measuring the efficiency of a company's use of its assets in generating sales revenue; calculated as sales divided by invested assets.