Which of the Following Items Do Not Form Part of the Economic

question 14

Multiple Choice

Which of the following items do not form part of the economic value added calculation?

• A) Weighted average cost of capital
• B) Book value of equity
• C) Market value of equity
• D) Income tax rate

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Definitions:

Production Efficiency

A state in which a system or process operates at the maximum capacity, using the least amount of resources and time, without compromising the quality of its output.

Selective Service Act

Law passed in 1917 to quickly increase enlistment in the army for the United States’ entry into World War I; required men to register with the draft.

Enlistments

The act of voluntarily joining the armed forces or a similar organization, often associated with military service.

Soldiers

Individuals serving in an army, whether voluntarily or through conscription, who undergo military training and participate in warfare or peacekeeping missions.