The One- Third Rule

question 2

Multiple Choice

The one- third rule

• A) says that if capital and labor are each increased 1 percent, then real GDP per person will increase by 1/3 percent.
• B) states that a country's GDP is comprised of one- third international trade.
• C) says that a 1 percent increase in capital per hour of labor leads to a 1/3 percent increase in real GDP per hour of labor.
• D) relates changes in productivity growth to changes in real GDP growth.

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Definitions:

Receivables Accounting

The process of recording and managing the money owed to a business by its customers for goods or services offered.

IFRS

International Financial Reporting Standards, a set of accounting guidelines that govern how financial statements are prepared and presented globally.

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in the United States.

Receivables Accounting

The process of managing money that is owed to a company for goods or services that have been delivered but not yet paid for.