To Have a Rising Standard of Living,a Nation's Stock of Capital

question 60

Multiple Choice

To have a rising standard of living,a nation's stock of capital must

• A) equal the amount of consumption in the country
• B) grow faster than the population
• C) be associated with a low rate of investment and high rate of consumption
• D) grow slower than the population
• E) decline to enable the production of essential consumption goods

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Definitions:

Paid-in Capital

The total amount of money or other assets that shareholders or owners have contributed to the company for use in business operations.

Par Value

The stated value of a financial instrument like a bond or stock share, as declared by the issuer.

Retained Earnings

The portion of a company's profits that is kept or retained for reinvestment or to pay debt, rather than being paid out as dividends to shareholders.