If There Is an Advance in the Technology Used to Produce

question 13

Multiple Choice

If there is an advance in the technology used to produce a product,what is the likely effect it may have on the supply?

• A) The company would not change its manufacturing.
• B) More people would be needed to produce the product.
• C) It would decrease the supply.
• D) It would increase the supply.

Understand the concept of present value and how to calculate it in the context of leasing versus buying decisions.

Grasp the impact of depreciation, including straight-line and MACRS, on tax shields and cash flows.

Differentiate between operating leases and financial leases and understand their characteristics.

Identify the factors affecting the net advantage to leasing (NAL) and how to compute it.

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Definitions:

Contact Hypothesis

A theory suggesting that under certain conditions, interpersonal contact is one of the most effective ways to reduce prejudice between majority and minority group members.

Social Identity Theory

A psychological theory that posits individuals define themselves by their group membership and seek to maintain positive self-esteem through their group affiliations.

Frustration-Aggression Hypothesis

is a theory suggesting that frustration leads to aggressive behavior, as frustration creates an impetus for aggression.

Ethnic Phenotypes

Observable physical characteristics that are common within a specific ethnic group, often related to genetics.