A Decrease in the Capital-Labor Ratio Would Result In

question 74

Multiple Choice

A decrease in the capital-labor ratio would result in:

• A)higher labor productivity because labor does more work.
• B)lower labor productivity because labor is working with relatively less capital.
• C)higher labor productivity because labor is producing less capital and more of other goods.
• D)lower labor productivity because more capital is available.
• E)higher labor productivity because more capital is available.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold or consumed within one year or within the operating cycle of a business, whichever is longer.

Intangible Assets

Non-physical assets that have value, such as patents, trademarks, and copyrights, known for their long-term benefits to a company.

Gain on Sale

The profit recognized when an asset is sold for more than its carrying amount.

Other Revenue

Income that a business earns from activities not related to its primary operations, such as investment income or rental income.