Without an Increase in the Supplies of Factors of Production

question 179

Multiple Choice

Without an increase in the supplies of factors of production, how can a nation achieve economic growth?

• A)by producing more high-value goods and less low-value goods
• B)through technological advancement which enables more output with the same quantity of resources
• C)by lowering the prices of factors of production
• D)by increasing the prices of factors of production

---

Definitions:

Net Present Value

A method used to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows over a period.

Discount Rate

The interest rate used in discounted cash flow (DCF) analyses to determine the present value of future cash flows.

Payback Period

The period needed to recoup the expenses of an investment.

Scrap Value

The estimated residual value of a fixed asset at the end of its useful life, often considered when calculating depreciation.