According to Economic Growth Theory, If the Spread of Technology

question 131

Multiple Choice

According to economic growth theory, if the spread of technology is not difficult, we would expect

• A)countries with lower productivity to adopt newer technology and raise their productivity.
• B)countries with high levels of income per capita to continue growing faster than countries with low incomes per capita.
• C)the elimination of diminishing returns to labor.
• D)an increase in the diminishing returns to capital.
• E)the elimination of diminishing returns to capital.

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Definitions:

Allowance for Uncollectibles

An accounting provision made for accounts receivable that may not be collected due to customer defaults or other reasons.

Accounts Receivable Balances

The total amount of money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Cash Flow Statement

A cash flow statement is a financial document that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Non-cash Expenses

Expenses recorded on a company's income statement that do not involve an actual cash outlay, such as depreciation or amortization.