In the Imaginary Country of Countriana,in 1996,the Average Worker Had

question 211

Multiple Choice

In the imaginary country of Countriana,in 1996,the average worker had to work 10 hours to produce 20 units of output.In that same country in 2006,the average worker needed to work 18 hours to produce 36 units of output.In that country,the productivity of the average worker

• A)increased by 2 percent between 1996 and 2006.
• B)increased by 5 percent between 1996 and 2006.
• C)remained unchanged between 1996 and 2006.
• D)decreased by 3 percent between 1996 and 2006.

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Definitions:

Initial Cost

The initial expenditure required to acquire an asset or to start a project, including purchase price and any associated set-up fees.

Investment

Allocation of resources, usually money, in order to generate income or profit.

Cash Flows

The total amount of money being transferred into and out of a business, especially regarding liquidity.

Net Present Value

A technique employed in the process of capital allocation for evaluating the profitability of a project or investment through determining the net present value of cash inflows and outflows.