Suppose the Growth in GDP Per Hour Worked Resulting from Physical

question 212

Multiple Choice

Suppose the growth in GDP per hour worked resulting from physical capital in an economy is 1 percent and the growth resulting from human capital is 2 percent.If the annual growth rate of GDP per hour worked is 5 percent,the growth resulting from technology equals ________.

• A) 1 percent
• B) 2 percent
• C) 3 percent
• D) 4 percent

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Definitions:

Drawing Account

An account used to record withdrawals made by a company’s owner for personal use, which is then deducted from the company’s capital.

Owner's Capital Account

Represents the total equity or net worth of an individual owner in a company, detailing the contributions, earnings, and withdrawals of the owner.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to the net income or loss for the period.

Recording Process

The systematic method of capturing and documenting financial transactions in the accounting records of an entity.