Country a and Country B Are the Same Except Country

question 314

Multiple Choice

Country A and country B are the same except country A currently has a lower level of capital. Assuming diminishing returns, if both countries increase their capital by 100 units and other factors that determine output are unchanged, then

• A)output in country A increases by more than in country B.
• B)output in country A increases by the same amount as in country B.
• C)output in country A increases by less than in country B.
• D)None of the above is necessarily correct.

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Definitions:

Safeguard Assets

Implemented measures and policies to protect a company’s assets from theft, damage, or misuse.

Internal Controls

A set of procedures and policies designed to ensure the accuracy and completeness of financial reporting, safeguard assets, and ensure compliance with laws and regulations.

Sarbanes Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.

Internal Controls

Processes and procedures designed to ensure the integrity of financial and accounting information, promote accountability and prevent fraud.