The Growth Rate of Productivity Due to an Increase in Capital

question 28

Multiple Choice

The growth rate of productivity due to an increase in capital income equals

• A)the share of capital income in aggregate income.
• B)the slope of the productivity function.
• C)the growth rate of capital per hour worked times the share of capital income in aggregate income.
• D)the growth rate of capital per hour worked.
• E)the growth rate of technology.

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Definitions:

Production Cost Report

A document detailing the total cost involved in manufacturing a product, including materials, labor, and overhead.

Cost Reconciliation Schedule

A report that reconciles the beginning and ending costs in a manufacturing process, accounting for costs added and inventory used.

Physical Units

A measure of quantity used to count tangible items or products manufactured, stored, or sold by a business.

Process Cost System

An accounting method used to track production costs for products that are not distinguishable from one another, often used in manufacturing.