If Capital Per Hour of Labor Decreases, Real GDP Per

question 79

Multiple Choice

If capital per hour of labor decreases, real GDP per hour of labor

• A) decreases because the level of technology decreases.
• B) increases because the level of technology increases.
• C) increases for a given level of technology.
• D) decreases for a given level of technology.

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Definitions:

Married Filing Separately

A filing option for married partners that enables them to report their personal income, deductions, and exemptions separately on individual tax returns.

Modified AGI

Adjusted Gross Income with certain deductions and exclusions added back in, used to determine eligibility for certain tax benefits.

Adjusted Gross Income

An individual's total gross income minus specific deductions allowed by the IRS, used to determine tax liability.

Deduction

An expense that can be subtracted from gross income to reduce the taxable income.