The Two Main Inputs We Consider in a Simple Production

question 72

Multiple Choice

The two main inputs we consider in a simple production function are:

• A) land and labor.
• B) capital and land.
• C) capital and labor.
• D) utilities and capital.
• E) natural resources and labor.

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Definitions:

Conservatism

In accounting, it is a principle that requires potential expenses and liabilities to be recognized immediately, but revenues only when they are ensured.

Indirect Planning Assumptions

Presumptions made about external factors that could influence an organization's planning, without direct control over them.

Direct Planning Assumptions

Fundamental assumptions that are explicitly stated and used as a base in the strategic planning and forecasting processes.

Financial Ratios

Financial Ratios are quantitative measures derived from a company's financial statements to assess its performance, efficiency, profitability, and financial health.