A Signal to Get More Shoes Produced Comes in a Market

question 62

Multiple Choice

A signal to get more shoes produced comes in a market or mixed economy when:

• A)podiatrists detect a greater incidence of fallen arches.
• B)the government so decides.
• C)profits in shoe production rise.
• D)Gallup polls report that consumers need more footwear.
• E)the price of socks rises.

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Definitions:

Profitability Index

A financial tool that calculates the relationship between the costs and benefits of a project by dividing the present value of future cash flows by the initial investment cost.

Mutually Exclusive

Situations or events that cannot occur at the same time—choosing one precludes the selection of the other.

Negative Net Present Value

A financial metric indicating that the present value of cash inflows is less than the present value of cash outflows, suggesting the investment is not financially viable.

Initial Cost

The upfront expense incurred to purchase an asset or to initiate a project.