Use the Following Information to Answer the Question(s) Below

question 73

Multiple Choice

Use the following information to answer the question(s) below:
(1) the rate of depreciation is 10% per year,
(2) the population growth rate is 2% per year, and
(3) the growth rate of technology is 3% per year.
-Refer to the information above.Which of the following represents the level of investment needed to maintain constant capital per effective worker (K / NA) in this economy?

• A)0.02K
• B)0.03K
• C)0.05K
• D)0.10K
• E) 0.15K

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Definitions:

Environmental Scanning

The process of gathering, analyzing, and interpreting information about external influences that could impact an organization's decision-making process.

Potential Trends

Emerging patterns or changes in industries, technology, consumer behavior, or the global economy that could influence future developments.

Regulatory Force

External forces, often in the form of government laws, regulations, and policies, that can impact a business’s operations and its approach to the market.

Environmental Scanning

The process by which businesses monitor and analyze their external environment to identify opportunities and threats.