In a Population,the Size of the Labor Force Shrinks but a Greater

question 73

Multiple Choice

In a population,the size of the labor force shrinks but a greater percentage of the labor force has a college degree.We can expect the human capital input to

• A) be unaffected.
• B) increase.
• C) decrease.
• D) first increase and then decrease.
• E) increase or decrease depending on which change has a larger impact.

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Definitions:

Debt-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, often used to assess the company's financial leverage.

Residual Dividend Policy

A strategy where dividends paid to shareholders are based on earnings left over after all operational and investment costs are covered.

After-Tax Earnings

The net income of a company after all taxes have been deducted from revenues.

Par Value

The nominal or face value of a stock or bond, as stated by the issuing corporation.