Which of the Following Factors Pushes the Per-Worker Production Function

question 169

Multiple Choice

Which of the following factors pushes the per-worker production function of an economy downward?

• A) a stable political environment
• B) a high risk of terror attack
• C) an increase in educated workforce in the country
• D) an increase in road networks in the country
• E) a law encouraging foreign investment

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Definitions:

Operating Working Capital

Current assets minus current liabilities, reflecting the short-term liquidity of a business.

Expansion Projects

Initiatives undertaken by a firm to increase its capacity or operations, often requiring significant capital investment.

Replacement Projects

Investments undertaken to replace old or obsolete assets with new ones, aiming to maintain or enhance efficiency, productivity, or the competitive position of a business.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and thus should not factor into the decision-making process for future investments.