What Is the Most Proximate (Or Direct) Cause of Growth

question 56

Multiple Choice

What is the most proximate (or direct) cause of growth in real GDP per capita?

• A) the factors of production
• B) institutions
• C) political system in the economy
• D) incentives

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Definitions:

Investing Activities

Financial activities related to the acquisition or sale of long-term assets and other investments that are not equivalent to cash.

Indirect Method

A cash flow statement preparation approach that adjusts net income for changes in non-cash accounts to compute cash flow from operating activities.

Direct Method

The direct method is a way of preparing cash flow statements where actual cash flows from operating activities are reported instead of adjustments from net income.

Direct Approach

A method used in accounting that focuses on the immediate recognition of revenues and expenses when they are incurred, without adjusting for accruals.