Labor Productivity Depends on the

question 97

Multiple Choice

Labor productivity depends on the

• A)quality of the labor
• B)the amount of capital
• C)the amount of natural resources
• D)the amount of other inputs, such as technology
• E)All of the answers are correct

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Definitions:

After-Tax Borrowing Rate

The interest rate on borrowed funds after accounting for the effect of income taxes.

Cost of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and attract funds.

Financial Lease

A lease agreement where the lessee effectively obtains all the risks and rewards of ownership without actually owning the asset.