What Are the Factors That Change Saving and Shift the Supply

question 178

Essay

What are the factors that change saving and shift the supply of loanable funds curve?

Understand the impact of educational or technological advancements on labor productivity and firm's production technology.

Understand the concept of labor and capital intensity in production technologies.

Calculate and interpret average and marginal product of labor.

Identify the production technology based on input requirements.

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Definitions:

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

Initial Cost

The upfront expenditure involved in the purchase of an asset or the start of a project.

Capital Budgeting

The process by which a business evaluates and plans for significant investments in projects or assets.

Useful Life

The estimated duration of time over which an asset is expected to be usable by its owner for its intended purpose.