In the US, Between 1990 and 2007, Capital Stock and the Level

question 52

Multiple Choice

In the U.S., between 1990 and 2007, capital stock and the level of technology increased dramatically. During the same period, employment and real wages rose. What do these set of events suggest?

• A) The demand for labor increased by more than the increase in supply of labor over this period.
• B) The demand for labor increased by less than the increase in supply of labor over this period.
• C) The demand for labor decreased while the supply of labor increased over this period.
• D) The demand for labor and the supply of labor decreased over this period.

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Definitions:

Interest

The cost paid for borrowing money, typically expressed as a percentage of the total borrowed.

JIT Policy

Just-In-Time policy, a strategy where materials are produced or acquired only as needed for use in the production process, reducing inventory levels.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated through a physical count or accounting methods.

Unit Sales

The quantity of items that have been sold within a particular timeframe.