If Inputs Increase by 30% and Outputs Decrease by 15

question 18

Multiple Choice

If inputs increase by 30% and outputs decrease by 15%, what is the percentage change in productivity?

• A) 100% decrease
• B) 11.54% increase
• C) 34.62% decrease
• D) 15% increase
• E) 15% decrease

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Definitions:

Par Value

The face value of a stock or bond, representing the nominal or dollar value assigned when issued.

Debentures

A type of long-term debt instrument unsecured by physical assets or collateral, relying on the creditworthiness and reputation of the issuer.

Pledged As Collateral

Assets that are offered as security for the repayment of a loan, where the lender has the right to take possession of the assets if the borrower defaults on the loan obligations.

Present Values

The monetary value now of a future lump sum or cash flow series, taking into account a particular rate of return.