Productivity Growth Can Be Calculated By

question 49

Multiple Choice

Productivity growth can be calculated by:

• A)outputs minus inputs.
• B)inputs divided by the outputs.
• C)outputs divided by the inputs.
• D)input plus output divided by two.
• E)((current productivity − previous productivity)÷ (previous productivity))× 100

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Definitions:

Investment Opportunity

A situation or option through which an investor can potentially increase their wealth by allocating resources in a way that generates returns.

Margin

Net operating income divided by sales.

Contribution Margin Ratio

The percentage of each sale that contributes to covering fixed costs, calculated as contribution margin divided by sales revenue.

Fixed Expenses

Expenditures that stay unchanged despite differences in the volume of production or sales, covering items like rental fees, payroll, and coverage costs.