If the Production Function Is Y = 3K, Then an Increase

question 152

Multiple Choice

If the production function is Y = 3K, then an increase in capital (K) by 1 unit would

• A) increase Y by 3 units.
• B) increase L by 3 units.
• C) increase Y by 0 units.
• D) decrease Y by 3 units.

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Definitions:

Allowance for Uncollectibles

A contra-asset account used to reduce accounts receivable to its net realizable value by estimating the amount of receivables that may not be collected.

Gross Accounts Receivable

The sum of money that a company's customers owe before subtracting any provisions for accounts that might not be collectible.

Net Accounts Receivable

The total amount of money owed to a company for goods or services that have been delivered but not yet paid for, minus any provisions for bad debts.

Allowance for Uncollectible Accounts

An estimated reserve for debts that may not be collected due to customer default.