If Capital Per Hour of Labor Increases, Real GDP Per

question 141

Multiple Choice

If capital per hour of labor increases, real GDP per hour of labor

• A) decreases because the level of technology decreases.
• B) decreases for a given level of technology.
• C) increases because the level of technology increases.
• D) increases for a given level of technology.

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Definitions:

Net Profit Margin

A profitability ratio calculated as net income divided by revenue, expressed as a percentage, indicating how much profit a company generates from its total sales.

Quality of Income

A measure of how easily accounting income can be converted to cash, indicating the reliability of earnings.

Gross Profit Percentage

A financial metric that represents the proportion of money left over from revenues after accounting for the cost of goods sold, expressed as a percentage.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.