An Increase in the Capital Stock

question 75

Multiple Choice

An increase in the capital stock:

• A) can increase output, but only if it is accompanied by an increase in the labor force.
• B) cannot increase output, even if it is accompanied by an increase in the labor force.
• C) provides valuable services directly, but not indirectly.
• D) can increase output, even if it is not accompanied by an increase in the labor force.

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Definitions:

Pay System

A structured approach to compensating employees, often involving scales based on job roles, experience, performance, and market factors.

Nonfinancial Incentives

Rewards given to employees that do not involve monetary compensation, such as recognition, opportunities for growth, and a positive work environment.

Internal Equity

The principle of providing fair compensation to employees by ensuring that jobs that require similar skills, effort, and responsibility are paid comparably within the organization.

Candidate Pool

The collection of individuals who have expressed interest or have been identified as potential hires for a job position.