The Calculation of the Contribution of an Increase in Labor

question 210

Multiple Choice

The calculation of the contribution of an increase in labor and capital and the contribution of technological change to real GDP growth is called _ .

• A) growth calculation in the twentieth century
• B) productivity accounting
• C) growth accounting
• D) technological and capital calculation

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Definitions:

Fixed Asset Turnover Ratio

A financial metric that shows how efficiently a company uses its fixed assets to generate sales, calculated by dividing net sales by average net fixed assets.

Labor Intensive

Describes production processes or industries that require a large amount of labor relative to capital to produce goods or services.

Fixed Asset Investments

Long-term investments in tangible assets such as property, plant, and equipment, intended for use in operations.

Trade-In Allowance

The value subtracted from the price of a new item when an old item is given as part of the deal.