The Productivity Paradox Refers to

question 71

Multiple Choice

The productivity paradox refers to

• A) increased spending on IT leading to decreased worker productivity.
• B) the evidence that suggests IT is irrelevant to worker productivity.
• C) increased IT investment leading to more sustainable competitive advantage.
• D) the lack of evidence of an increase in worker productivity associated with the massive increase in IT spending.
• E) falling computer prices due to increased processor speed.

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Definitions:

Accounting Break-Even

The point at which total revenues equal total expenses, and the company generates neither profit nor loss from operations.

Depreciation Expense

The portion of the cost of a fixed asset that is considered as an expense due to its use, wear and tear, or obsolescence over its useful life.

Tax Rate

The metric used to figure out the tax obligation of individuals and corporate entities.

Discount Rate

The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility.