According to the New Growth Theory, Which of the Following

question 69

Multiple Choice

According to the new growth theory, which of the following promote economic growth?
i. Discoveries that bring profit.
ii. Choices that expand human capital.
iii. Random events that create technological change.

• A) i and iii
• B) ii only
• C) i, ii and iii
• D) i only
• E) i and ii

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Definitions:

Shipping Costs

Expenses associated with the transportation of goods from the supplier to the point of sale or end-user.

Contribution Margin

The amount remaining from sales revenues after all variable expenses have been deducted.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, i.e., they remain constant regardless of the level of production or sales.

Discontinue Department

The process or decision to eliminate a particular department or business unit that is not performing up to expectations or aligning with company strategy.