Which of the Following Best Explains the Growth in Output

question 197

Multiple Choice

Which of the following best explains the growth in output per worker hour during the 20th century?

• A) The quality of labor declined during that period.
• B) The quantity of labor increased during that period.
• C) The quality of capital improved during that period.
• D) The worker-capital ratio increased during that period.

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Definitions:

Net Method

A technique for accounting where discounts for early payment are assumed to be taken and recorded as such.

Returned Merchandise

Items that have been sold and subsequently returned by the customer to the seller due to defects, dissatisfaction, or other reasons.

Inventory Returns Estimated

An estimate of the value of goods that are anticipated to be returned by customers, used for accounting and inventory management purposes.

Sales Refund Payable

A liability account representing the amount that a company expects to refund to customers for returned products.