Which of the Following Is the So-Called Efficiency Factor of Economic

question 178

Multiple Choice

Which of the following is the so-called efficiency factor of economic growth?

• A) having an efficient financial system
• B) reaching full production potential
• C) having free trade
• D) enhanced quantity and quality of human resources

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Definitions:

Depreciation

The accounting method of allocating the cost of a physical or tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

EBIT

A financial metric that calculates a company's profit by including all costs except for interest and income tax expenses, known as Earnings Before Interest and Taxes.

Free Cash Flow

The amount of cash a company generates after accounting for capital expenditures needed for operations. It is an important measure of financial performance and liquidity.

Capital Expenditures

Long-term investments made by a company in buildings, equipment, or other assets to improve or maintain its business operations.