Automated Production Methods Are Only Attractive When They

question 54

Multiple Choice

Automated production methods are only attractive when they

• A) reduce labor productivity.
• B) replace workers.
• C) decrease per-unit costs of production.
• D) lower wages.

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Definitions:

Coupon Rate

The percentage annually paid as interest on a bond, relative to its face value.

Market Interest Rate

The prevailing rate of interest determined by supply and demand in the money market.

Par

Typically refers to a face value of a bond or stock that is set at issuance, or the stated value of a currency.

Principal Amount

The original sum of money borrowed in a loan, or invested, on which interest is calculated.