Which of the Following Statements Is TRUE

question 27

Multiple Choice

Which of the following statements is TRUE?

• A) Although inefficient, trade restrictions are effective at reducing child labor.
• B) Most child labor around the world takes place in factories that export products.
• C) Rising real GDP per capita has been an important force in reducing child labor.
• D) About 50 percent of the world's children aged 10-14 work.

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Definitions:

Payback Period

Payback period is the amount of time it takes for an investment to generate an amount of cash flow equal to the original investment amount.

Net Cash Inflows

The amount of cash that a business receives over a period, minus the amount of cash outflows.

Inventory Cost

Inventory cost includes the costs associated with purchasing, storing, and managing goods that a business intends to sell; it typically comprises the purchase price, warehousing costs, and any other expenses related to holding inventory.

NPV Rule

The principle that an investment is considered acceptable if its net present value (NPV) is positive, under the context of discounted cash flow analysis.