Figure 12-1

question 417

Multiple Choice

Figure 12-1. On the horizontal axis, K/L represents capital (K) per worker (L) . On the vertical axis, Y/L represents output (Y) per worker (L) .
-Refer to Figure 12-1. The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

• A)In the long run, a higher saving rate leads to a higher level of productivity.
• B)In the long run, a higher saving rate leads to a higher level of income.
• C)In the long run, a higher saving rate leads to neither a higher growth rate of productivity nor a higher growth rate of income.
• D)All of the above are correct.

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Definitions:

Sales Slip

A document that records the details of a transaction made between a buyer and a seller.

Cash Register Tape

A paper roll or digital record used in cash registers to record transactions made during a business day.

Owner's Equity

The residual interest in the assets of a company after deducting liabilities.

Trial Balance

A trial balance is a bookkeeping report that lists the balances in each of an organization's general ledger accounts.