The One- Third Rule Predicts That If Capital Per Hour

question 399

Multiple Choice

The one- third rule predicts that if capital per hour of labor increases by 6 percent and real GDP per hour of labor increases by 6 percent, then the increase in capital per hour of labor increases real GDP per hour of labor by and technological change increases real GDP per hour of labor by .

• A) 6 percent; 0 percent
• B) 4 percent; 2 percent
• C) 0 percent; 6 percent
• D) 2 percent; 4 percent

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Definitions:

Post-money Valuation

The estimated value of a company after external financing and investments have been added to its balance sheet.

Financing

The act of providing funds for business activities, making purchases, or investing, which can come from various sources such as loans, equity investments, and sales revenue.

Company's Value

The worth of a company, determined by factors such as market capitalization, revenue, profit, assets, and more.

Convertible Debt

A type of investment or loan that can be converted into equity, or shares, of the borrowing company under certain conditions, often used by startups.