Which of the Following Is Most Likely to Reduce the Rate

question 37

Multiple Choice

Which of the following is most likely to reduce the rate of economic growth?

• A) a high domestic saving rate
• B) investment in human capital
• C) subsidies for R&D activities
• D) slow technological progress

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Definitions:

Unit Contribution Margin

The difference between the selling price per unit and the variable costs per unit, representing how much each unit sold contributes to covering fixed costs and generating profit.

Break-even Sales

Break-even Sales represent the amount of revenue needed to cover all fixed and variable costs, at which point a business does not make a profit or incur a loss.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed versus variable costs a company has.

Operating Income

Earnings from a company’s core business operations, excluding deductions for interest and taxes.