Capital Deepening Refers To

question 73

Multiple Choice

Capital deepening refers to:

• A)an increase in the amount of capital per worker.
• B)an increase in the amount of workers per unit of capital.
• C)a decrease in the amount of capital per unit of output.
• D)an increase in the amount of output per unit of capital.
• E)an increase in the productivity of capital.

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Definitions:

Compensating Balance

A minimum account balance that a borrower is required to maintain as a condition of borrowing from a lender, often used to offset the cost of maintaining the loan.

Accounts Payable Period

The average time it takes for a company to pay off its suppliers.

Credit Sales

Transactions in which goods or services are provided to a customer with the agreement that payment will be made at a later date.

COGS

Stands for Cost of Goods Sold, which represents the direct costs attributable to the production of the goods sold by a company, including materials and labor.