Which of the Following Statements Is TRUE Concerning Productivity

question 95

Multiple Choice

Which of the following statements is TRUE concerning productivity?

• A)The lower the partial productivity ratio, the greater the productivity.
• B)Productivity has increased when the partial productivity ratio is high.
• C)Prices of inputs are incorporated in the partial productivity ratio.
• D)The partial productivity ratio measures the number of outputs produced per multiple input.
• E)The partial productivity ratio measures the amount of a single output produced with multiple inputs.

---

Definitions:

Weighted Average Cost of Capital (WACC)

The average rate of return a company is expected to pay its shareholders and debt holders, weighted according to the proportion of equity and debt in the company's capital structure.

Return on Equity

A financial ratio indicating the profitability of a company relative to its shareholders' equity, calculated as net income divided by shareholders' equity.

Weighted Average Cost of Capital (WACC)

A calculation of a firm's cost of capital in which each category of capital (debt, equity, etc.) is proportionately weighted, representing the average rate that a company is expected to pay for all its financing sources.

Market Price

The immediate valuation at which one can transact assets or services in the market sector.