If Labor Is Abundant in South Africa but Capital Is

question 192

Multiple Choice

If labor is abundant in South Africa but capital is scarce,when South Africa opens to trade,the price of labor will _____ and the price of capital will _____.

• A)rise;rise
• B)fall;fall
• C)rise;fall
• D)fall;rise

Comprehend the scope of operations management activities including planning, organizing, leading, and controlling.

Understand the principle of hidden production functions in various sectors.

Understand the concept of sustainable growth rate and its calculation.

Calculate and interpret the capacity utilization and the implications for firm growth.

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Definitions:

Held To Maturity

An accounting classification for debt securities that a company intends and is able to hold until they mature.

Accrued Interest

Interest that has been incurred but not yet paid over a specified period, typically relating to bonds or loans.

Bond Interest Rate

The percentage of interest that bond issuers must pay to bondholders, typically expressed as an annual rate.

Semiannually

Occurring twice a year; used to describe the frequency with which certain financial or operational events take place, such as interest payments on bonds.