One of the Factors Contributing to the Fact That Labor

question 88

Multiple Choice

One of the factors contributing to the fact that labor productivity is higher in the U.S. than in the People's Republic of China is:

• A) China's larger stock of capital.
• B) the higher capital/labor ratio in China.
• C) the higher capital/labor ratio in the U.S.
• D) China's smaller stock of fossil fuels.
• E) the fact that much labor in the U.S. is in management.

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Definitions:

Par Value

The face value of a bond or stock, representing the amount that will be returned to the holder at maturity, often used as a legal face value for stocks.

Installment Note

A debt instrument that requires a series of periodic payments of both principal and interest until the debt is paid in full.

Journal Entry

A record in the books of accounts that documents a financial transaction, showing the debit and credit effects.

Interest Expense

Costs incurred by an entity for borrowed funds, which are typically reported on the income statement within the financing or operating sections.