The Table Below Shows Various Values of Labour (L),capital (K),and

question 57

Multiple Choice

The table below shows various values of labour (L) ,capital (K) ,and technology (T) for Economies A,B,and C.In each case,the aggregate production function takes the following form: Y = T × TABLE 25-4 Refer to Table 25-4.Consider the changes shown for L,K,and T for Economy B,where output (Y) is the economy's real GDP.As total labour and capital inputs rise,this economy will show

• A)rising GDP but falling per capita GDP.
• B)rising GDP and rising per capita GDP.
• C)rising GDP but constant GDP per capita.
• D)GDP rising faster than capital.
• E)GDP rising more slowly than capital.

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Definitions:

Work in Process Inventory

The account that tracks the costs associated with the production process that is not yet completed.

Weighted-Average Method

An inventory costing method that averages the cost of goods available for sale and assigns that average cost to the units sold.

FIFO Method

A method in accounting for managing inventories and financial matters where the first items placed in inventory are the first ones to be used or sold.

Equivalent Units

A concept used in cost accounting to express the amount of work done by an incomplete production process on units of output, converted into an equivalent number of fully completed units.