For the U.S.economy, We Can Assume That

question 2

Multiple Choice

For the U.S.economy, we can assume that

• A)output grows at the same rate as both capital and labor
• B)capital is a larger source of growth than labor
• C)labor is a larger source of growth than capital
• D)capital and labor both contribute equally to output growth
• E)both A and D

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Definitions:

Capital Lease

A lease agreement that is classified as a purchase by the lessee for accounting purposes, effectively treating the leased asset as owned property.

Executory Costs

Costs related to the unperformed obligations under a lease, typically including insurance, maintenance, and taxes.

Minimum Lease Payments

The lowest amount that a lessee is obligated to pay over the lease term for the right to use an asset.

Rental Payments

Periodic payments made by a lessee to a lessor for the use of a property, vehicle, or equipment.