An Increase in the Ratio of Capital to Labor ________

question 12

Multiple Choice

An increase in the ratio of capital to labor ________ labor productivity.

• A) increases
• B) decreases
• C) will not change
• D) has an ambiguous impact on

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Definitions:

Semiannual Payment

A payment made twice a year, often used in terms of loan repayments or investment returns.

Gross Income

The total income received before any deductions or taxes are applied.

Tax-exempt State Bonds

Bonds issued by state or local governments that offer investors the benefit of receiving interest payments that are exempt from federal income tax.

Gross Income

The total income from all sources before deductions, taxes, and expenses.