Professor Bernard's picture

Exercice #2

By Bernard

Establish the relationships between these fundamentals notions:

  1. Productivity
  2. Rate of return
  3. Production
  4. Renonciation
  5. Profitability

And their definitions:

  1. The process of transforming scarce ressources to make them available
  2. Profitability: ratio in value between the profit and any cost in the production process.
  3. Productivity: ratio in volume between the results of some production and what made that production.
  4. Rate of return: ratio between the profit and the value of a production process.
  5. Renonciation: state of an economic agent that just made a choice, considering the option rejected.

Look for the answers.<