If a Country Experiences Growth in "Total Factor Productivity", Then

question 28

Multiple Choice

If a country experiences growth in "total factor productivity", then

• A)all growth in real GDP can be explained by growth in the capital stock.
• B)material standards of living are falling.
• C)none of the growth in real GDP can be accounted for by growth in capital and the labour force.
• D)all growth in real GDP can be explained by growth in the labour force.
• E)there is some growth in real GDP that cannot be accounted for by growth in capital or the labour force.

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Definitions:

Fixed Charge Coverage

A financial ratio that measures a company's ability to cover its fixed charges, such as interest and lease expenses, with its earnings before interest, taxes, depreciation, and amortization (EBITDA).

Dividends

Dividends are portions of a company's earnings paid out to shareholders as a reward for their investment.

Company's Ability

A company's capacity to execute its strategies, achieve its objectives, and fulfill its operational requirements effectively.

Negative Covenant

A clause in a loan agreement that restricts the borrower from certain actions, such as limiting dividend payments to shareholders or borrowing additional funds, to protect the lender's interests.