The Model Used to Study the Earnings of Resources of

question 68

Multiple Choice

The model used to study the earnings of resources of
Production is called:

• A)comparative advantage theory.
• B)absolute advantage theory.
• C)specific­factors model.
• D)production possibility frontier.

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values.

Risk Aversion

The premise that most people prefer lower risk investments when expected returns are about equal.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project.

Abandonment Option

In project management and finance, the option to cease investment in a project if it doesn't meet certain criteria, minimizing losses.