Figure 4.1 Determinants

question 8

Multiple Choice

Figure 4.1
Determinants
of k/k
-In Figure 4.1, if the technology improves, then:

• A)the steady-state capital stock increases.
• B)the steady-state growth in capital per worker increases.
• C)the steady-state growth in output per worker increases.
• D)the population growth rate increases.

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Definitions:

Accruals

Accounting method recognizing revenue when earned and expenses when incurred, regardless of when cash transactions occur.

Doubtful Accounts

Receivables that a company is unlikely to collect, representing amounts owed by customers that might eventually be written off as bad debts.

Operating Activities

Business actions that relate directly to the production, sale, and delivery of a company's goods or services, reflected in its cash flow.

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profit that excludes interest and income tax expenses.