What Key Change in 1975-87 Led to a Faster Growth

question 40

Multiple Choice

What key change in 1975-87 led to a faster growth rate of equipment relative to structures?

• A)a change in relative tax rates
• B)a change in relative depreciation rates
• C)a change in relative prices
• D)a change in relative marginal productivity

Understand the concept and sources of venture capital.

Define and identify examples of intrapreneurs.

Discriminate between spin-off firms and original firms.

Identify examples of technological breakthroughs from government or university labs.

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Definitions:

Replacement Rate

In the context of benefits or salaries, it refers to the percentage of a worker's pre-retirement income that is paid out by a pension program upon retirement.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Future Value

The amount to which some current amount of money will grow if interest earned on the amount is left to compound over time.

Market Rate

The prevailing interest rate available in the marketplace, often influenced by factors like central bank rates, inflation, and the demand for and supply of credit.