Increases in the Total Real Output of Many DVCs Do

question 131

Multiple Choice

Increases in the total real output of many DVCs do not increase the nation's standard of living because

• A) diminishing returns may be encountered in increasing total output.
• B) population increases may dissipate the increase in real output.
• C) disguised unemployment in agriculture will persist.
• D) surplus farm labor may move from rural areas to industrial areas, causing unemployment.

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Definitions:

Managerial Accounting

The area of accounting focused on providing financial data and advice to company managers for decision-making purposes.

GAAP

Generally Accepted Accounting Principles encompass a series of standard accounting practices and rules for the creation of financial reports.

Financial Accounting

The field of accounting that focuses on providing information to external users such as investors, creditors, and regulators, primarily through financial statements.

GAAP

A set of widely accepted accounting norms and standards, referred to as Generally Accepted Accounting Principles, for the preparation of financial statements.