Empirical Studies Suggest That

question 247

Multiple Choice

Empirical studies suggest that

• A) labor productivity has declined throughout U.S. history.
• B) technological advances account for about 40 percent of U.S. productivity growth.
• C) achieving economies of scale is the most important factor in U.S. economic growth.
• D) all U.S. economic growth from between 2001 and 2007 can be attributed to increases in the quantity of labor.

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Definitions:

Direct Expenses

Costs that can be directly attributed to the production of specific goods or services.

Overhead

The ongoing administrative and operational costs not directly attributable to the production of goods or services, such as rent and utilities.

Residual Income

The income that remains after deducting all required costs of capital from operating profits, often used to assess divisional or project performance.

Average Total Assets

A financial metric calculated by averaging a company's total assets at the beginning and end of the accounting period.