Which Statement Best Explains Why Growth in China Has Been

question 2

Multiple Choice

Which statement best explains why growth in China has been so rapid recently?

• A) China began with very little capital, so its marginal product of capital was very high.
• B) China began with very little capital, so its marginal product of capital was very low.
• C) China began with very high capital, so its marginal product of capital was very high.
• D) China began with very high capital, so its marginal product of capital was very low.

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Definitions:

Cash Account

An account that records all transactions involving cash receipts and cash payments.

Debit

A record in accounting that causes assets to grow or liabilities to shrink on a firm's balance sheet.

Account Title

The name given to an account in the general ledger that reflects the type of asset, liability, equity, revenue, or expense it represents.

Credit Side

The right side of an account record in double-entry bookkeeping, used to record increases in liability, equity, and revenue accounts, and decreases in asset and expense accounts.