Economic Value Added (EVA) Analysis Indicates

question 6

Multiple Choice

Economic value added (EVA) analysis indicates:

• A) the amount of income generated by each dollar of capital investment.
• B) the number of sales dollars generated by each dollar of capital investment.
• C) the percentage of each sales dollar that remains as profit after all expenses are covered.
• D) the amount of increased capital generated by each dollar of income.
• E) how much shareholder wealth is being created.

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Definitions:

Recessions

Periods of temporary economic decline during which trade and industrial activity are reduced, typically identified by a fall in GDP in two successive quarters.

Keynes

Pertains to John Maynard Keynes, an English economist whose theories revolutionized macroeconomic practice and government economic strategies.

Aggregate Supply

The nation’s total output of goods and services.

Depression

A severe and prolonged downturn in economic activity, characterized by significant decline in GDP, high unemployment, and deflation.