If the Quantity of Capital Per Worker in the Economy

question 93

Multiple Choice

If the quantity of capital per worker in the economy increases,

• A) the amount of money held by workers increases.
• B) the stock of financial assets held by the public increases.
• C) the stock of human capital necessarily increases.
• D) labor productivity increases.

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Definitions:

Financing Activities

Transactions related to raising capital and repaying investors, including issuing debt, selling stock, or paying dividends.

Cash Dividends

Payments made by a corporation to its shareholder members from its earnings or reserves.

Net Cash

The amount of cash a company has on hand after all debts and liabilities have been paid.

Investing Activities

Financial actions related to the acquisition and disposal of long-term assets and other investments not considered as cash equivalents.