Productive Inefficiency Could Arise from

question 1

Multiple Choice

Productive inefficiency could arise from

• A) a waste of available labor
• B) a lack of resources
• C) an improvement in technology
• D) a movement along the production possibilities frontier
• E) too many goods being produced by the country or firm

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Definitions:

Cash Inflows

The total amount of money being transferred into a business, typically from operational, investing, and financing activities.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.

Discount Rate

The interest rate used to discount future cash flows to their present value, often used in investment appraisal.

Salvage Value

The predicted residual worth of an asset at the end of its usefulness.