The New Growth Theory Asserts That Profits Are

question 31

Multiple Choice

The new growth theory asserts that profits are

• A) not an essential component in determining whether the economy grows or not.
• B) permanent, because physical activities can be replicated.
• C) permanent, because they are derived from discoveries.
• D) an illusion, since costs are never fully covered.
• E) temporary, because the discoveries that lead to profits are eventually used by all.

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Definitions:

Pareto Analysis

A statistical technique in decision-making used for the selection of a limited number of tasks that produce significant overall effect. It is based on the principle that 80% of effects come from 20% of causes.

DMAIC

An acronym for Define, Measure, Analyze, Improve, and Control; a data-driven quality strategy used for improving, optimizing, and stabilizing business processes and designs.

Benchmarks

Standard points of reference by which something can be measured or judged, often used for comparison to assess performance or quality.