A Technical Innovation in a Firm Would

question 43

Multiple Choice

A technical innovation in a firm would:

• A) Shift each isoquant away from the origin.
• B) Shift each isoquant toward the origin.
• C) Cause more to be produced with more capital and less labour.
• D) Cause more to be produced with more labour and less capital.

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Definitions:

Salaries Payable

An account reflecting the debts to workers for performed but unpaid work.

Closing Entry

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, ultimately resetting the balances of temporary accounts to zero.

Income Summary

An account used in the closing process that summarizes the results of operations by collecting all revenue and expense account balances before determining the net income or loss.

Retained Earnings

The cumulative amount of profits that have been reinvested in the business rather than distributed to shareholders as dividends.