Which of the Following Statements, If Any, Is Correct for a Nation

question 221

Multiple Choice

Which of the following statements, if any, is correct for a nation which is producing only consumption and capital goods?

• A)Other things equal, the more consumer goods a nation produces, the greater will be its future growth rate.
• B)Other things equal, the more capital goods a nation produces, the greater will be its future growth rate.
• C)There is no general relationship between the current division of output between consumer and capital goods and the future growth rate.
• D)None of the above statements is correct.

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Definitions:

Assets Test

A means of determining eligibility for certain government assistance programs based on the value of an individual's or entity's assets.

Reportable Segments

Components of an enterprise about which separate financial information is available and is evaluated regularly by the chief decision-maker in deciding how to allocate resources.

Assets

Economic resources owned or controlled by a business, viewed as having value and expected to provide future benefits to the operations.

Profits

The net income received by a company after deducting all expenses, taxes, and costs.