Without an Increase in the Supply of Factors of Production,how

question 90

Multiple Choice

Without an increase in the supply of factors of production,how can a nation achieve economic growth?

• A) By producing more high-value goods and less low-value goods.
• B) Through technological advancement which enables more output with the same quantity of resources.
• C) By lowering the prices of factors of production.
• D) By increasing the prices of factors of production.

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Definitions:

Financial Leverage

The use of borrowed funds (debt) to amplify returns from investments or projects.

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated by dividing total liabilities by total assets.

Company's Risk

Refers to the potential for loss or adverse effects on a company's financial health and operational performance, due to internal or external factors.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest held by shareholders.