According to Edward Denison's Estimates,the Largest Proportion of Economic Growth

question 19

Multiple Choice

According to Edward Denison's estimates,the largest proportion of economic growth during the 1929-82 period was

• A)growth in the labor input.
• B)growth in output per unit of input.
• C)growth in the capital input.
• D)economies of scale.
• E)education.

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Definitions:

Taxable Income

Income on which tax must be paid; total income minus exemptions and deductions.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), expressing the percentage of income that goes to taxes.

Depreciable Equipment

Tangible assets used in operations that lose value over time due to wear and tear, which can be written off as an expense for tax purposes over its useful life.

Net Income

The ultimate profit a company makes, determined by taking away all expenses, taxes, and costs from the total income generated.