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Why Is Net Primary Production (NPP) a More Useful Measurement

question 47

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Why is net primary production (NPP) a more useful measurement to an ecosystem ecologist than gross primary production (GPP) ?

Calculate and interpret the impact of adding a new product line on existing sales and understand cannibalization effects.
Calculate the net present value (NPV) and internal rate of return (IRR) for a given project.
Understand and calculate operating cash flows using different approaches (e.g., top-down, bottom-up).
Determine the effects of depreciation and changes in net working capital on project cash flows.

Definitions:

Aggregate Expenditure

The total amount of spending in the economy that includes consumer spending, investment, government spending, and net exports.

Multiplier

An economic factor that quantifies the change in income levels resulting from a change in spending or investment.

Gross Domestic Product

The total value of all goods and services produced within a country over a specific time period, serving as a broad measure of economic activity.

Marginal Propensity

The fraction of an additional amount of income that is spent on consumption. This is a key factor in determining the impact of an income change on the economy.

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