In General, If Country a Is Accumulating Capital at a Faster

question 110

Multiple Choice

In general, if country A is accumulating capital at a faster rate than country B, then country A

• A)is using a larger proportion of resources to produce consumption goods.
• B)will soon have a comparative advantage in the production of most goods.
• C)will have more unemployment than country B.
• D)will have a production possibilities frontier that is shifting outward faster than country B's.
• E)will have a higher rate of inflation than country B.

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Definitions:

Financing Activities

Refers to transactions and business events affecting long-term liabilities and equity, including obtaining resources from owners and providing them with a return on their investment.

Bonds Payable

Bonds payable refers to the long-term debt instruments issued by a company to borrow funds, which must be repaid at a specified maturity date.

Issuing

The act of distributing something, such as a company releasing new shares of stock to the public or a government agency providing official documents.

Operating Activity

Transactions that relate to the primary operations of a company, such as sales revenue and expense activities.